July 25th, 2014 • 6:58 PM

Lyndon LaRouche welcomed the bipartisan vote in the House of Representatives on Friday to pass House Concurrent Resolution 105, stating that this vote means other things are now possible.

The resolution introduced by Rep. Jim McGovern, Walter Jones and Barbara Lee states in amended form that “The president shall not deploy or maintain United States Armed Forces in a sustained combat role in Iraq without specific statutory authorization for such use enacted after the date of the adoption of this concurrent resolution.” It also states, that “Nothing in this concurrent resolution supersedes the requirements of the War Powers Resolution.”

This resolution reasserts the constitutional principle that it is the Congress which must authorize and declare war, not the President. It was passed by an overwhelming bi-partisan majority. 180 Republicans and 190 Democrats voted in favor of the resolution. It was backed by both the Democratic and Republican leadership.

At the same time, the House Oversight Committee has launched an investigation of the “litigation policy” of the Obama administration’s Department of Justice with regard to settlements involving the conduct of Citigroup and JPMorgan in the “packaging, securitization, marketing, sale and issuance of residential mortgage-backed securities.”

In both cases, in contrast to the DOJ’s handling of Credit Suisse and PNB Paribas, the settlements were arrived at without even bringing a lawsuit against the banks, let alone prosecuting the responsible parties.

Lyndon LaRouche immediately stated that this brings up the question of Argentina. This is new. As in the case of the House vote, there are clearly those who have decided not to play the Wall Street game.

This is also clear from a column which appeared in the Business section of the New York Times written by Floyd Norris entitled, “The Muddled Case of Argentine Sovereign Bonds.” Norris criticizes not only the judge, but also the appeals court and the Supreme Court. He points out that Judge Griesa has blundered by making a ruling which did not take into consideration the fact that “some of the Argentine exchange bonds were denominated in United States dollars, some in Argentine pesos, some in Euros and some in Japanese yen. Some of them were subject to New York law, others to Argentine, English or Japanese law.” Norris then concludes: “As Wednesday approaches (the deadline set by the judge—editor), the judge has a lot to think about. It would be better if he had done some of that thinking before he issued his order, or if the appeals court or the Supreme Court had forced him to do so.”

In light of these developments Lyndon LaRouche made the following statement about what needs to be done:

“No one is ever going to get that debt collected. Best thing to do is drop it. It is a lost cause. Some have decided not to play with Wall Street. There is no way bail-in can win. It has come to the point where the very idea of doing it doesn't work. Let’s cancel all bad debt. Then we can use the debt factor still in the system by denominating it as an asset, which can be marketed at lower prices.

“Reduce the problem to dimensions the population can handle. We don’t care how much is wiped out. Wipe out enough so you can have an economy.

“The international system is in a breakdown crisis. Smart people want to shutdown everything that is not sustainable. Just cancel it. If it is not fungible, forget it. Let’s take what we have that is fungible and let’s run with it. Isn't it better to operate on a fungibility concept? It gives you a chance to create a new credit factor and put people back to work.

“The best thing is to get rid of these claims. Put people back to work producing again.

“Eliminate the bankruptcy factor. Make everything fungible that is fungible. Now you have a chance to buy into a firm, to go to work in a firm.”

Following the House vote, now is the time to strike while the fire is hot. Congress must not stop here.

As Lyndon LaRouche has stated, Congress must not recess as currently planned on July 31. Congress must stay in session until they remove Obama from office and enact Glass Steagall, as the first of four necessary laws proposed by LaRouche to implement bankruptcy reorganization and to ensure that World War III is not launched in Congress’s absence.