How Far Will Rudd Go To Bail Out British Banking?

First ‘Stimulus’, Now Brutal Austerity:

How Far Will Rudd Go To Bail Out British Banking System?

The Australian banking system, still on life support from the Rudd government, is being drafted into propping up the British banks caught up in the meltdown of the Inter-Alpha Group of Banks.

Australia’s NAB is in line to buy assets of the bankrupt Royal Bank of Scotland (RBS), a key member of the Rothschild/Lloyd’s of London-controlled Inter-Alpha group; another Inter-Alpha member, Spanish giant Banco Santander, is also being lined up as a crutch for RBS.

Bizarrely, the banks being drafted for support, are themselves also bankrupt, and are only open thanks to life support from their respective governments and central banks.

Citizens Electoral Council leader Craig Isherwood asked today, “Is this why the Rudd government is propping up our banks, to bail out the British banking system?”

He warned, “The people are going to be made to pay for this, through brutal austerity that has already started.”

Sixteen months after governments and central banks coordinated a global stimulus program which ran up trillions of dollars in more debt to bail out the bankrupt banking system, the debt-saturated system can’t take any more, the governments themselves are bankrupt or close to it, and so austerity is being demanded of nations across the globe, in order to free up cash from the people’s living standards to keep the global financial bubble afloat.

The collapse of the Euro Zone signals the collapse of that global system, which is centred in London. London made promises to bail out Europe, Russia, etc, with their latest cash cow, the Brazilian carry trade (banks like Santander borrow European Central Bank funds at 1% and reinvest them in Brazil, for an effective paper return of up to 37%), but U.S. statesman and physical economist Lyndon LaRouche blew the charade apart by proving that these profits are fictitious.

Now with British Banks like RBS and Lloyds in crisis (labelled “zombie banks” by the London Independent), even Australia’s NAB is being drafted as an emergency prop for London.

“This is a farce,” Mr Isherwood declared. “NAB and the rest of Australia’s banks are themselves bankrupt: aside from their $13 trillion or so in unpayable derivatives obligations—to which the NAB is the most exposed—they share $441 billion in 90-day foreign debt, which was set to wipe them out in October 2008 before Rudd intervened with his bank guarantee.

“They couldn’t pay it then, they can’t pay it now, they are as bankrupt as the British and Spanish banks like Santander, and the Australian people are paying to keep them afloat, which will now also be used to keep the British system afloat.”

Mr Isherwood accused Prime Minister Rudd of preparing a cost-cutting régime to loot the people, to free up the financial resources needed to continue to prop up the banks:

“Rudd was stymied on the ETS, which would have been the greatest public milking cow in history, so now he’s targeting some of our biggest areas of social expenditure—public health and the elderly; it is here that he can gouge the biggest savings, in the name of ‘efficiency’, ‘cutting wastage’ and improving ‘outcomes’.

“President Obama turned the American people against him with his plan to loot healthcare, because they saw it will increase the death rate in order to prop up the insurance funds and the banks—Rudd will soon find that the Australian people also will not stand for this.

“Rudd (and Swan and Gillard and Tanner, et al.) should have listened to LaRouche,” Mr Isherwood concluded. “The CEC warned them that the bailout would make matters worse, and we proposed the only workable alternative—a bankruptcy reorganisation, in our 2009 feature DVD, The Homeowners and Bank Protection Bill—The Only Solution. In that DVD Gillard and others are shown claiming that ‘no one could have seen this crisis coming.’ As the DVD shows—we did, and now we have been right again.”

ENDS

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