Stimulus won’t work—implement HBPB now!

Citizens Electoral Council of Australia

Stimulus won’t work—implement HBPB & National Bank now!

Citizens Electoral Council leader Craig Isherwood intervened in the debate on Kevin Rudd’s $42 billion stimulus package, to state, “It won’t work. You could only justify this kind of expenditure if it had a chance of working, and this doesn’t.”

Mr Isherwood pointed out that the financial crisis is a global crisis, and cited the analysis of the world’s leading economist and most accurate economic forecaster, Lyndon LaRouche, delivered in an internationally webcast address on Feb. 11, that no “stimulus” could work, before a bankruptcy reorganisation of the global financial system.

“The economists who are demanding this stimulus package, are the same discredited economists who whine lamely that ‘nobody could have seen this coming,’ when Lyndon LaRouche and my party have been warning people for years, most notably in our 2001 book, What Australia Must Do To Survive the Depression.

“These ‘experts’ insist on trying to treat the disease with the same medicine that caused the problem—the very necessity of Rudd’s second stimulus package within a month of the last one proves this method doesn’t work.

“Even if the money were spent on useful infrastructure projects, it still wouldn’t work as a stimulus, because you are trying to stimulate a global financial system while it is being drained by a $1.4 quadrillion derivatives bubble—like a one tonne flea on a dog.

“To save the dog, kill the flea; to save the economy, cancel the derivatives, by putting the financial system into bankruptcy reorganisation.

“The CEC first proposed legislation to do this in August 2007, the Homeowners and Bank Protection Bill, which would keep people in their homes, and put Australia’s banks through bankruptcy administration, to cancel their combined $14.2 trillion in derivatives obligations, write down their inflated asset values, and write off their bad debts.”

Mr Isherwood also pointed to the CEC's longstanding legislation for a new, government-owned national bank, modelled on the original Commonwealth Bank, which can create the public credit to finance the long-term reconstruction of a re-industrialised Australian economy.

“We’re in this mess because the Government has ignored the HBPB for 18 months, and now the financial crisis has turned into a chain-reaction, economic breakdown crisis.

“The only interests served by ignoring the HBPB are those of the private banks who would be stripped of their power,” he charged. “Rudd sacrificing the economic wellbeing of the Australian people to serve private bankers is another example of why we need an Australian Pecora Commission into corruption and possible criminality in the Australian financial system.

“I know many Australians like the sound of extra money in their pocket, but I urge them to think,” Mr Isherwood concluded.

“Only by flushing out the bad debt and speculation, through a bankruptcy reorganisation, can we save what is real—and begin to rebuild around that.”

ends

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