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PRESS RELEASE


British Out To Destroy
Sovereignty of World's Nations,
Including the United States

Jan. 26, 2010 (EIRNS)—A Jan. 17 article in the London Daily Telegraph, author Ambrose Evans-Pritchard revealed that the City of London based financial cartel's solution to their collapsing world monetarist system is to destroy the sovereignty of nations. The nations of Europe have already had their sovereignty stripped via monetary union, and have been subjected to a new international system which is a new British Empire. Lyndon LaRouche said today that British policy is to do the same thing to the United States. LaRouche noted, however, that most Americans will hold anyone pushing the elimination of sovereignty in the United States to be guilty of treason.

To illustrate his point, LaRouche pointed to the drive in the United States to create a Congressional commission on "deficit reduction"—i.e. to implement Nazi-style austerity by cutting Social Security, Medicare, Medicaid, and other entitlements, especially for the elderly—as an illustration of this central British imperial policy. "If they take away your sovereignty, and give the authority to a commission which is outside the process of formal legislation, and you buy it, there's nothing you can do to stop them."

Fear of the reaction of the revelation of this British imperial approach caused the article to be suppressed. After the article was published, the Daily Telegraph removed it from its website. Evans-Pritchard had made very frank statements describing how completely the British empire has already destroyed national sovereignty of nations in Europe west of Belarus and Russia, and describing what was in store for any nation that tried to resist being shorn of its sovereignty.

Because of pressures within certain European countries against this policy, Evans-Pritchard cited a legal analysis of the European Central Bank:

Fears of a euro breakup have reached the point where the European Central Bank feels compelled to issue a legal analysis of what would happen if a country tried to leave monetary union.

"Recent developments have, perhaps, increased the risk of secession (however modestly), as well as the urgency of addressing it as a possible scenario," said the document, entitled "Withdrawal and Expulsion from the EU and EMU: Some Reflections."

The author makes a string of vaulting, Jesuitical, and mischievous claims, as EU lawyers often do. Half a century of ever-closer union has created a "new legal order" that transcends a "largely obsolete concept of sovereignty" and imposes a "permanent limitation" on the states' rights....

Crucially, the author argues that eurozone exit entails expulsion from the European Union as well. All EU members must take part in EMU (except Britain and Denmark, with opt-outs).

This is a warning shot for Greece, Portugal, Ireland, and Spain. If they fail to marshal public support for draconian austerity, they risk being cast into Icelandic oblivion. Or for Greece, back into the clammy embrace of Asia Minor.

ECB chief Jean-Claude Trichet upped the ante, warning that the bank would not bend its collateral rules to support Greek debt. "No state can expect any special treatment," he said. He might as well daub a death's cross on the door of Greece's debt management office.

Evans-Pritchard notes that the countries in difficulty will face rising interest rates, worsening their situation, and that any nation that tries to resist will be granted no mercy:

The policy is ... to bleed a society in order to uphold the ideology of the European Project. Greece's national debt will be 120 percent of GDP this year. S&P says it will reach 138 percent by 2012. A fiscal squeeze—without any offsetting monetary or exchange stimulus—will cause tax revenues to collapse. Debt will rise higher on a shrinking economic base.

Even if Greece can cut wages without setting off mass protest, it lacks the open economy and export sector that may yet save Ireland in similar circumstances. Greece is caught in a textbook deflation trap.

[Greek] Labour minister Andreas Loverdos says unemployment would reach a million this year—or 22 percent, equal to $30 million in the US. He broadcast the fact with a hint of menace, as if he wanted Europe to squirm. Two can play brinkmanship.