Next Thursday, The Schiller Institute in Denmark is holding a seminar entitled, \u201cThe World After the U.S. Mid-term\u00a0Elections: Glass-Steagall bank separation and a New Bretton\u00a0Woods credit system can make the New Silk Road become the World Land-Bridge,\u201d with a live-video presentation by Helga\u00a0Zepp-LaRouche, a presentation by Hussein Askary, and a pre-recorded presentation by Paul Gallagher.<\/p>\n I am Tom Gillesberg, Chairman of the Schiller Institute in\u00a0Denmark. Thank you for allowing us to come.<\/p>\n The Danish public has had a sudden awakening to the true state\u00a0of the Danish financial world. For many years, Danske Bank\u00a0(Danish Bank) has been deeply involved in money laundering,\u00a0and both the bank’s management and the Danish Financial Supervisory Authority failed completely, after they became\u00a0aware of the problem many years ago. It has also been revealed, that other major SIFI banks (Systematically Important Financial Institutions) in Denmark have colluded in\u00a0tax evasion, and have failed in their fight against fraud and money laundering. Finally, many of the Danish banks, as well\u00a0as their international colleagues, have contributed to the\u00a0looting of the Danish and foreign treasury funds through fraudulent dividend tax rebates (also known as Cum-ex). All of\u00a0this shows, that it is not a matter of individual problems, or\u00a0individual bad apples, but is a systemic problem in which the\u00a0entire banking and financial world is impregnated with\u00a0uncontrolled greed, putting its own financial gain above the law, and the general welfare. The policy of deregulation, and\u00a0allowing the financial world to control itself, has failed. This was actually already evident in connection with the\u00a0meltdown of the international financial system in 2007-2008.<\/p>\n I, and other activists from the Schiller Institute, warned\u00a0about this already in 2007, when I ran for parliament with the slogan: \u201cAfter the financial crash \u2013 Maglev across the\u00a0Kattegat\u201d (here or a footnote: the body of water separating the island of Zealand, where Copenhagen is located, and Aarhus, Denmark’s second largest city on the Jutland\u00a0peninsula). But our warnings were ignored. Then, after the crash in 2008 – where only a Danish government guarantee\u00a0covering all financial institutions prevented a meltdown in the Danish banking world \u2013 when we suggested how to clean up\u00a0the financial world through the implementation of Glass-Steagall bank separation, which would separate the wheat from the chaff in the process – separate normal banking activity,\u00a0important to the society, from the casino economy \u2013 there was again an institutional refusal to listen, in Denmark, and the\u00a0rest of the Western world. They would not put an end to the\u00a0unhealthy behavior in the financial world that had created the\u00a0collapse in 2008. If entire financial sector had not been\u00a0deregulated, and Glass-Steagall banking separation abolished\u00a0in the U.S. in 1999, we would have avoided the financial\u00a0crisis.<\/p>\n But then, the focus was to save the banks, and all other players in the financial world, with bank packages and quantitative easing, at the expense of the real economy and\u00a0the living standards of ordinary people. Therefore, today, we are facing a coming financial crisis, which is potentially far worse than the one we experienced in 2008. The Danish measures\u00a0of letting banks and mortgage companies increase their capital\u00a0solidity (with customers’ money), will not prevent a new\u00a0crisis. Without a separation of the activities in the financial supermarkets, as in 2007-2008, we still have no fire doors that can prevent fire in a part of the financial world\u00a0from spreading to the entire financial house.<\/p>\n The imminent financial collapse<\/strong><\/p>\n There are many ticking bombs under the international financial system. In the wake of the U.S. Federal Reserve Bank’s rate hikes, there are more and more warnings about a coming\u00a0meltdown of the $3.5 trillion sized U.S. corporate debt\u00a0market, where more and more unsecured loans are being\u00a0repackaged and resold in many different disguises – similar to\u00a0the bad U.S. mortgage loans in 2007-2008. This has been accompanied by a fall in the stock markets, and a sharp fall\u00a0in economic growth in the U.S. and Europe. The Bank for International Settlements warned of this dangerous development in its annual report in July, and the Bank of England did\u00a0something similar in October. Then, the IMF’s explicit warning\u00a0of falling corporate bond markets came in the IMF blog on\u00a0November 12th.<\/p>\n A collapse of the mortgage debt market will have greater consequences than the collapse of the U.S. subprime loan bubble in 2008. Once the crisis is triggered, it will hit the\u00a0banks around the world, and behind the polished surface, they have become even bigger, and even more bankrupt than they were\u00a0in 2008. Like the upbeat to the 2007-2008 crisis, there has\u00a0also been a collapse and capital flight from the so-called \u201cemerging markets,\u201d and the gigantic, unregulated market for\u00a0financial derivatives can implode at any time.<\/p>\n The Solution<\/strong><\/p>\n There is no Band-aid solution that can fix this, but the Schiller Institute and the international LaRouche movement have proposed a coherent solution for how we can surgically\u00a0remove the speculative cancer tumor, and create credit for productive investments, both internationally, and here Denmark.<\/p>\n 1. We must join the New Silk Road<\/strong><\/p>\n While most of the economy in the western world has been lagging for the last 10 years, and most people have experienced a falling standard of living, China has continued\u00a0to experience strong economic growth, and has been able to lift more and more people out of poverty. The 2008 crisis was used to launch massive infrastructure projects, so China now\u00a0has more kilometers of high-speed trains than the rest of the\u00a0world combined. New towns, water projects, power stations and\u00a0other infrastructure have been built, which make it possible to take care of a growing population, with an increasing standard of living.<\/p>\n In 2013, China’s President Xi Jinping launched this\u00a0development policy on and international level with the Belt & Road Initiative, also known as The New Silk Road, which,\u00a0today, is 12 times larger than the U.S. Marshall Plan after World War II, and over 60 countries are now participating. Denmark ought to be a prominent part of this development\u00a0agenda, especially in Africa and South-West Asia.<\/p>\n 2. A New Bretton Woods Credit System<\/strong><\/p>\n On November 30, the G20 summit will occur in Argentina, and the Schiller Institute has suggested that the summits between President Trump, Xi Jinping and Putin be used to establish a\u00a0new Bretton Woods credit system, in cooperation with India’s\u00a0Prime Minister Modi. A new version of the old fixed-exchange\u00a0system, established after World War II, but now, to create long-term credit for the development of all nations. This is the only thing that can prevent the ongoing disintegration of\u00a0the current City of London and Wall Street-based financial\u00a0system from leading to chaos and possible war.<\/p>\n 3. LaRouche’s Four Laws<\/strong><\/p>\n In Denmark, we can now prepare measures that can protect our economy against the upcoming financial tsunami. The Schiller Institute has proposed Lyndon LaRouche’s Four Laws, a\u00a0conceptual script to turn our economy away from financial\u00a0speculation, and back to physical economy, and scientific and\u00a0technological progress:<\/p>\n 1. The enactment of Glass-Steagall bank separation of the Danish financial sector, where we clear out, and reorganize the banking system and divide normal banking activity from\u00a0financial speculation. The financial supermarkets must be\u00a0separated into normal banks, investment banks, mortgage\u00a0business and insurance, each on its own. Banks and other\u00a0financial institutions must be divided and reduced in size, so they no longer constitute a systemic risk, and the government\u00a0deposit guarantee will only apply to normal banks;<\/p>\n 2. We must create government credit for productive investment in the economy;<\/p>\n 3. We must channel part of this credits into major infrastructure projects, and other things, that can increase productivity, and energy-flux-density in the economy, and\u00a0create the next, higher economic platform for Denmark, such as a Kattegat bridge and a national maglev network, and fixed connections between Helsing\u00f8r (Demark) and Helsingborg\u00a0(Sweden), and under the Fehmarn Belt (to Germany).<\/p>\n 4. We must invest heavily in research and\u00a0 development of the areas that create future technologies, such as nuclear power, fusion energy, space research, etc.\u00a0The biggest mistake we can make, is to believe that we can leave these questions to the financial world. It has proven that it has neither the moral compass, nor the necessary\u00a0solutions, to ensure our future. Therefore, the state must now\u00a0assume its responsibility, and establish the necessary laws\u00a0and regulations that can safeguard the general welfare, and the future of Denmark, and the Danish people. In light of the\u00a0recent bank scandals, there is a broad public backing for\u00a0doing just that.<\/p>\n Thank you.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Thursday, November 22, 2018, Schiller Institute in Denmark chairman Tom Gillesberg,\u00a0accompanied by a 4-person delegation, gave testimony before the Business Committee of the Danish parliament, Folketing. We\u00a0requested the 15-minute testimony in the hope that the recent series of serious bank scandals to hit the country, would\u00a0increase the openness to our proposals for what needs to […]<\/p>\n","protected":false},"author":26,"featured_media":49901,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[491,488],"tags":[842],"class_list":["post-49896","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-location-denmark","category-activity-economic","tag-lang-en"],"_links":{"self":[{"href":"https:\/\/2.schillermeet.de\/ru\/wp-json\/wp\/v2\/posts\/49896","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/2.schillermeet.de\/ru\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/2.schillermeet.de\/ru\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/2.schillermeet.de\/ru\/wp-json\/wp\/v2\/users\/26"}],"replies":[{"embeddable":true,"href":"https:\/\/2.schillermeet.de\/ru\/wp-json\/wp\/v2\/comments?post=49896"}],"version-history":[{"count":9,"href":"https:\/\/2.schillermeet.de\/ru\/wp-json\/wp\/v2\/posts\/49896\/revisions"}],"predecessor-version":[{"id":49987,"href":"https:\/\/2.schillermeet.de\/ru\/wp-json\/wp\/v2\/posts\/49896\/revisions\/49987"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/2.schillermeet.de\/ru\/wp-json\/wp\/v2\/media\/49901"}],"wp:attachment":[{"href":"https:\/\/2.schillermeet.de\/ru\/wp-json\/wp\/v2\/media?parent=49896"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/2.schillermeet.de\/ru\/wp-json\/wp\/v2\/categories?post=49896"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/2.schillermeet.de\/ru\/wp-json\/wp\/v2\/tags?post=49896"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Delegation.\"](\"http:\/\/2.schillermeet.de\/wp-content\/uploads\/2018\/11\/delegation-i.jpg\")
Schiller Institute\u2019s Full Testimony Before Danish Parliament\u2019s Business Committee<\/h3>\n