Aug. 15, 2017–Former Italian Economy Minister Giulio Tremonti has issued a new warning of the danger of an imminent new financial crash. In an interview with Italy’s largest daily Corriere della Sera on Aug. 13, Tremonti noted that there was a false sense of calm.
“The causes of the crisis are all still there,” he said. “The excess liquidity that caused the crisis ten years ago is today exponentially higher. Finance is undergoing a frightening genetic mutation. All the elements producing the famous bubbles are all there.”
Tremonti, now a Senator and head of the Italian Aspen Institute, has been a prominent insider in European economic and government circles since at least the early 2000s. He is well-known for his trenchant opposition to the devastating effects of globalization, and has called for a New Bretton Woods. He has also
indicated his support for banking measures like Glass-Steagall, in order to protect the economy.
His words should be heeded not only in Europe, but in the United States, where legislation for the return to Glass-Steagall is before the U.S. Congress, but being stalled by Wall Street interests.
Postscript: As we post this, it is perhaps worth noting that it was on August 15th forty-six years ago, that the whole process of financial globalization of the world economy got a giant boost with President Nixon’s decision to break with the Bretton Woods system, and take the dollar off the gold-reserve standard. At that time, economist Lyndon LaRouche warned of the disastrous effects this move could result in globally, results that the world has suffered from since. A new financial system based on American System principles remains the only solution.