The Great Reset Can Be Stopped with Glass-Steagall Reform
EIR Economics editor Paul Gallagher has drawn an efficient parallel between the strategies implemented by Hitler’s Finance Minister Hjalmar Schacht and the current scheme of central bankers known as the “Great Reset”. At the August 2019 yearly meeting of central bankers at Jackson Hole, Wyoming, that scheme was again discussed as a means of bringing about a “regime change” in financial affairs. Former head of the Bank of England Mark Carney (currently the UN’s “decarbonization” czar) and Philipp Hildebrand, a former head of the Swiss central bank and now vice president of BlackRock, explained how central banks should take over the fiscal powers of governments and manage money flows to the economy, while a worldwide synthetic currency should be created to replace the dollar.
Speaking on the third panel of the Schiller Institute conference on June 26 (cf. The report below), Gallagher explained that the first step was then taken when the Federal Reserve, in September, took over interbank lending, and has since then replaced the role of the so-called market in overnight refinancing of banks. The stage had been set for the “regime change” by the large-scale Quantitative Easing carried out by the Fed and the ECB, which resulted in hypertrophic growth of the biggest banks –but in no growth of credit to the economy.
The “Next Generation EU” as well as Joe Biden’s “Green Deal” policies are part of the same scheme.
The precedent for such a central bank takeover is Hjalmar Schacht’s policy, first as head of the German central bank in 1923, and as Hitler’s economy minister a decade later. During the first phase, Schacht ended the refime of hyperinflation by making money very scarce, and imposing brutal economic austerity; in the second phase, he did the exact opposite in order to finance Hitler’s war machine, effectively giving the central bank control over government spending.
That was a central bank “regime change whose purpose was a huge shift in economic activity across the board. In just two years 1933-35, Schacht drove arms production from 2% of Germany’s GDP, to 20% of it. Some other industries – for example, textile and clothing production, agricultural implements, housing construction – were throttled. In the context of that shift began the labor camp system which gradually evolved into the horror of the 20th Century.”
Like Hjalmar Schacht, central banks today are using their money-printing and regulating power to drive a great shift into what they intend to be a $30-40 trillion “green finance” bubble which will get them through a global debt collapse. That is the purpose of the “Great Reset”.
It must be stopped, Gallagher insisted. And the way to do it is to break up the major banks in all nations, by applying the Glass-Steagall criteria for strict bank separation, and to nationalize the central banks to create national credit institutions for productivity and productive employment.