LaRouche Cites Hamilton And FDR In Call For New National Bank
February 27, 2009 (LPAC) -- Lyndon LaRouche today further elaborated on his call, earlier this week, for the establishment of a new Hamiltonian National Bank, as part of the implementation of his Homeowners and Banks Protection Act (HBPA).
``We have the precedent of our first Treasury Secretary, Alexander Hamilton's takeover of all the Revolutionary War debts of the states,'' LaRouche explained. ``The Hamilton precedent is crucial today, because Hamilton set the foundations of our entire system of national banking and credit. Hamilton took over the debt obligations of the states, established the role of the Federal government as the sole source of national debt and
credit. This was, and still is, to this day, fundamental. The debt obligations of the states, once assumed by Hamilton, formed the basis for the issuance of new credit for national infrastructure investments, including roads, canals and bridges, that boosted the overall productivity of our new sovereign republic. This is why a new National Bank is vital for the
restructuring of the current, hopelessly bankrupt banking system, and the launching of an economic recovery.''
LaRouche also cited President Franklin Roosevelt's role in passing the Glass-Steagall Act of June 1933, which reconstituted a Federal and state-chartered commercial banking system, in the wake of his Bank Holiday bankruptcy reorganization of the nation's shuttered private banks, as the second precedent for his current call for a new Hamiltonian National Bank. ``President Roosevelt did not formally establish a new National Bank, but he achieved the same results, through his bankruptcy reorganization
of the commercial banking system, and his use of the Reconstruction Finance Corporation and other mechanisms to generate a flood of Federal government credit for job creation and massive infrastructure expansion. Programs like the Tennessee Valley Authority (TVA) transformed the United States, and FDR accomplished this, through the very same methods pioneered by Hamilton.
``From the time of the Peace of Paris in 1783, through the ratification of the Federal Constitution four years later,'' LaRouche elaborated, ``Hamilton laid down certain cornerstone principles of our national banking and credit system. We can use those Constitutional precedents to reorganize today.''
LaRouche explained. ``As I first stated in my HBPA proposal of the summer of 2007, we must freeze all foreclosures of owner-occupied homes, for the duration of the crisis. We must then put all of the commercial banks--the Federal Reserve System as a whole--through full audit, followed by a bankruptcy reorganization. The worthless debt on the books of the banks will simply be canceled. The legitimate debts will be honored, in bankruptcy reorganization. The whole bankrupt Federal Reserve System will be replaced, in reorganization, by a new National
Bank. We shall launch a massive capital budget investment in high-technology, science-driver infrastructure projects, using the Constitutionally specified method of Congressional and Presidential-authorized credit. These Federal government credits, for specified infrastructure investment, will be channeled through the reorganized Federal and state-chartered commercial banks. The recapitalization of the banks, through infrastructure investment, will restore our banking system, over time, to healthy condition.
``That is how Alexander Hamilton did it. That is how Franklin Roosevelt did it. That is how I hope to see President Obama do it. This is the American System tradition, and there is no legitimate alternative available,'' LaRouche concluded.
LPACTV: National Debt, A National Blessing: Hamilton's National Bank
LaRouche is still alive?
February 28, 2009 10:37 PM | Reply | Permalink
I don't know about the part of putting a halt on all foreclosures. americans HATE when they think someone is getting something they don't deserve. More so than they hate not getting what *they* deserve. They'd worry about Like guy deciding to stop making mortgage payments because he knows that bank won't take his house away and not because he can't afford it.
March 1, 2009 9:58 AM | Reply | Permalink
LaRouchePAC Issues Updated Version of Homeowners and Bank Protection Act of 2007
February 5, 2009 (LPAC)--LaRouche PAC today issued an updated version of Lyndon LaRouche's Homeowners and Bank Protection Act of 2007, first issued by economist LaRouche in his July 25, 2007 webcast. The full text, formatted for memorialization by local governmental bodies, is included below:
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Homeowners and Bank Protection Act of 2007
Whereas, the failure of the leadership of the United States Congress to pass the Homeowner and Bank Protection Act of 2007 proposed by Lyndon LaRouche in his July 25, 2007 webcast, has transformed a dire situation from one that could have remained manageable through the Autumn of 2007, into a breakdown crisis of not only the U.S. economy, but of the world economy;
Whereas, the Congressional leadership instead chose a course of insulting treatment of state and local legislative and associated bodies within the states, who clamored for the Congress to enact the HBPA, as shown in the HBPA's passage by five state legislatures, and more than 150 city councils across the United States, in addition to hundreds of endorsements by trade union and other constituency leaders individually;
Whereas the repeated attempts approved by Congress to bail out financial institutions with cumulative trillions of taxpayers' and Federal Reserve money, have utterly failed;
Whereas, forcing the leadership of the U.S. Congress into more responsible behavior on the HBPA now, is perhaps the only chance to begin to move things in a direction which could lead to saving the United States of America itself from the deepest physical depression in its history;
THEREFORE, be it resolved, that
the City/State of______________________
hereby endorses the Homeowners and Bank Protection Act of 2007, as initiated by economist Lyndon H. LaRouche, Jr. This Act includes the following provisions:
1. Congress must establish a Federal agency to place the Federal and state chartered banks under protection, freezing all existing home mortgages for a period of however many months or years are required to adjust the values to fair prices, and restructure existing mortgages at appropriate interest rates. Further, this action would also write off all of the speculative debt obligations of mortgage-backed securities, derivatives, and other forms of Ponzi schemes that have plunged the banking system into bankruptcy.
2. During the transitional period, all foreclosures shall be frozen, allowing American families to retain their homes. Monthly payments, the equivalent of rental payments, shall be made to designated banks, which can use the funds as collateral for normal banking practices, thus recapitalizing the banking systems. These affordable monthly payments will be factored into new mortgages, reflecting the deflating of the housing bubble and the establishment of appropriate property valuations, and reduced fixed mortgage interest rates. This shakeout will take several years to achieve. In the interim period no homeowner shall be evicted from his or her property, and the Federal and state chartered banks shall be protected, so they can resume their traditional functions, serving local communities, and facilitating credit for investment in productive industries, agriculture, infrastructure, etc.
3. State governors shall assume the administrative responsibilities for implementing the program, including the rental assessments to designated banks, with the Federal government providing the necessary credits and guarantees to assure the successful transition. And therefore,
Be it Further Resolved, that a copy of this resolution shall be forwarded to members of Congress from the state, and also be delivered to the President of the United States, for immediate implementation.
February 27, 2009 (LPAC)--The New York State General Assembly became the sixth state legislative body in the United States, to pass a resolution urging Congressional passage of the LaRouche-initiated Homeowners and Bank Protection Act, on Feb. 26. Bill No. K196 had 40 sponsors. The other five states are: Rhode Island, Alabama, Kentucky (Senate), Mississippi, and Vermont. In addition, there are ten states in which the HBPA has been introduced in the state legislatures: Tennessee, Florida, Indiana, Kentucky (House), Michigan, Missouri, Oklahoma, South Carolina, South Dakota, and West Virginia.
http://www.larouchepac.com/hbpa
March 2, 2009 11:48 PM | Reply | Permalink