March 14 (EIRNS)—ON MARCH 14, THE ITALIAN CHAMBER OF DEPUTIES STARTED TO DEBATE THE 'NEW BRETTON WOODS' PARLIAMENTARY MOTION ON REFORMING THE INTERNATIONAL FINANCIAL-MONETARY SYSTEM, drafted by Deputy Mario Lettieri in collaboration with LaRouche representative Paolo Raimondi, chairman of the Italian Solidariet?ovement. In the first phase of the debate, presided over by the Vice President of the Chamber of Deputies Publio Fiori, who introduced a parliamentary question to the government, in February 1997, proposing a New Bretton Woods conference, there were speeches by Deputies Lettieri, Paola Mariani, and Sandro Delmastro delle Vedove, all supporting the proposal. Deputy Lettieri read the text of the motion, containing a long report on the exponential growth of the financial economy as measured against the real economy.
Referencing BIS data, Lettieri emphasized the danger of a systemic crash, due to the gigantic derivative bubble in which banks and hedge funds are involved. Lettieri recounted how "American economist and politician Lyndon LaRouche has for some time analyzed the causes of the systemic crisis and promoted a reorganization of the entire world financial and monetary system, through a new Bretton Woods." It is necessary therefore to move towards an operational G8 meeting, with participation of other countries, to discuss fundamental rules for a new financial and monetary system able to prevent a financial collapse and reactivate the real economy, said Lettieri, a member of the center-left opposition "Margherita" party.
Lettieri said, "In 1944, when the first Bretton Woods conference was convoked, we were coming out of a war. Today, we have the duty to wage with determination a war against poverty in the world." This is not an ideological issue, but an issue unifying majority and opposition, beyond the party lines, Lettieri said, calling for a bipartisan approach in the debate. "We have no time to lose, to avoid a systemic threat that could provoke a crisis even worse than the 1929-33 one," he concluded.
Deputy Paola Mariani, from the opposition Left Democrats (Democratici di Sinistra—DS), intervened, focussing on the responsibility of the IMF in the systemic crisis and in the various "local" crises such as the Argentinian bankruptcy. Quoting at length Joe Stiglitz, former chief economist at the World Bank, Mariani supported the Lettieri motion, stating: "The time has come to build a new financial architecture that protects the real economy, and therefore to an international conference similar to the conference that took place in 1944 at Bretton Woods."
Finally, at the end of the first debate session, Deputy Sandro Delmastro delle Vedove, from the government party Alleanza Nazionale (AN) intervened. Delmastro delle Vedove stressed how this is "absolutely the most important issue" to be debated today. He exposed the deafening cowardly silence" from the news media on the issue. Recalling that the financial economy is in the hands "of a few hundred men who have not been elected by anyone and who elevated speculation to a system." the AN Deputy supported the proposal for "a new Bretton Woods, as we hear more and more often." Motivating his support, he stated that "the situation is on the verge of a collapse. In particular, the U.S. crisis is most serious, independently of whoever is at the White House—Democrat or Republican—and his efforts to cover it up. The U.S. deficit is literally frightening, and puts America in a situation in which it has lost power over the financial system."
"There is the unpleasant feeling of being on the deck of the Titanic," Delmastro delle Vedove concluded, and called for "a return to a productive economy," to obtain through "new rules that allow the development of the real economy."
The archived video and audio of the Italian Parliament debate can be found at http://www.camera.it/audiovideo
Seduta numero 601 di Lunedi 14 marzo 2005—Ore 11,30
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