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INTERNATIONAL CAMPAIGN TO RESTORE GLASS-STEAGALL
Fdo. Josep Manuel Novoa Novoa tells the US Congress: Pass Glass-Steagall
6 May 2013
(LPAC)—The widely-read Spanish author and investigative journalist, Fdo. Josep Manuel Novoa Novoa, sent the following open letter to the U.S. Congress. Letter to the Congress of the United States of America Promoting May 4, 2013 Honorable Congressman: Allow me to address such distinguished individuals to state the urgent necessity of reestablishing credit in Spain, in a situation which is leading to the bankruptcy, through asphyxiation, of thousands of businesses, with the resulting disaster befalling the citizenry because of its impact on the loss of employment, which now has reached 6.2 million people (27% of the labor force, and tending towards 30% in coming months). The situation is unbearable, with the very real danger of a social uprising. The policy of budget cuts implemented by the European Union with regard to Spain and other countries in the south of Europe, has produced the opposite effect than what was sought. The State’s revenues have diminished in an alarming fashion, and further the Spanish State has indebted itself recklessly, to refinance the Spanish banks which have huge debts contracted with the French and, above all, German creditors. I understand that the U.S. Congress has before it draft legislation, HR 129, presented by representatives Marcy Kaptur and Walter Jones, the ``Return to Prudent Banking Act.’’ I expect and hope that this law will be approved in the United States, since this initiative is the only option, given globalization, that can have an impact in Europe. The Glass-Steagall Law passed during the Franklin D. Roosevelt presidency, which separated productive commercial banking from speculative investment banking, is the only possibility for emerging intact from this crisis, and that is also important enough to prevent such a crisis from recurring. It seems evident that, if measures are not taken, these events will be repeated with increasing virulence. Finally, honorable Congressman, allow me to appeal to the patriotism and leadership of the United States of America, recalling the Marshall Plan which was implemented for the reconstruction of the countries of Europe after World War II. Again, that historic achievement is in the hands of you congressman, to repeat that accomplishment with the passage of the Glass-Steagall Law, which, by setting an example, will spread to the European nations and to Spain, in particular. Without this initiative, the chain will break at its weakest link, Spain, and it will end up affecting international finances; for which reason it is urgently necessary to restore credit in order to produce and reactivate the economy. From my position, as a person interested in and knowledgeable of the circumstances which surround us, I respectfully appeal to you to promote and pass the Glass-Steagall Law. I am sure, even now, that you will have the gratitude of the people of Europe, and of Spain especially. Signed, |