The Government must come clean about which Australian banks are in danger of collapsing, instead of using taxpayer money to prop them up behind the scenes.

The Federal Government’s $62 billion Future Fund, comprised of three years of budget surpluses (taxpayer funds gouged by the rising GST charge on skyrocketing prices for food and fuel, but not spent on hospitals, schools or infrastructure), and chaired by former banker David Murray, injected $2 billion into Australia’s ailing banks between January and April.

Banks of Australia

It has now poured another $500 million into the deeply troubled ANZ Bank—the bank which lost nearly $1 billion on margin lender Opes Prime, and whose credit crisis has forced it to rethink financing for major projects like the Tasmanian pulp mill.

The Australian public deserve to know what the Government knows about which banks are in danger of collapse, before those banks go under and take the hard-earned savings of Australians with them.

 

Add this blatant taxpayer bailout via the Future Fund, to the recent announcement by Commonwealth Treasurer Wayne Swan of a scheme to establish a government-guarantee for up to $20,000 in depositors’ funds in banks, and Rabobank advertising itself as “Australia’s safest bank”—you know the banks are in crisis.

Instead of allowing the banking fraternity to coordinate their own secret bailout using taxpayers’ money in the Future Fund, the Government should implement the CEC’s Homeowners and Bank Protection Bill (HBPB).

The HBPB will stop homeowners, farmers and tenants from losing their homes, and protect depositors by stopping any banks from collapsing, by putting those banks under federal protection and regulation, and reorganising their toxic balance sheets through massive write-downs of their unpayable debt and inflated assets.

It is modelled on the Homeowners and Bank Protection Act put forward by Lyndon LaRouche in the United States, and supported by numerous local and state governments, which itself is based on measures used by US President Franklin Roosevelt in the Great Depression to stop a banking collapse.

LaRouche is the world’s most accurate economic forecaster. His forecast of a 1923 Weimar Germany-style hyperinflationary blowout of the world’s monetary system is unfolding in front of our eyes: banks in America, Britain and Australia are failing, millions of families are losing their homes, and the world food shortage underscores the severity of the world’s physical economic breakdown crisis.

The issue is whether the Government will act in the interests of the people, in a transparent way, through the HBPB, or continue to be an agent for private banking interests to use taxpayers’ funds to bail themselves out.

Supplied by Citizens Electoral Council of Australia

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