Home

A federally-registered independent political party

Follow the CEC on Facebook Follow @cecaustralia on Twitter Follow the CEC on Google +


Follow the CEC on Soundcloud












Citizens Electoral Council of Australia

Media Release  1st of August 2007

Craig Isherwood, National Secretary
PO Box 376, COBURG, VIC, 3058
Phone: 03 9354 0544 Fax: 03 9354 0166
Email: cec@cecaust.com.au
Website: /
 

LaRouche: The Financial System Has ALREADY Collapsed!

Commenting on the ongoing meltdown of the yen carry-trade, affecting particularly the New Zealand and Australian dollar, as well as the dramatically spreading collapse of hedge funds, American Democratic leader and economist, Lyndon LaRouche, commented that, "I'm not impressed with what's happening today. Why? Because it already happened. The system has already come down." The outstanding debt on the books of the banks can never be paid. Silly panicked fools are rushing to collect, but they are finding out that the money isn't there. And yet, there are still schmucks out there who protest, "But, I don't see it. Prove to me that the system has already collapsed."

He elaborated; "The whole system was doomed to blow out, and the timing was largely subjective. When would time run out on the ability to collect on the unsustainable debt? As long as no one tries to collect on the debt, everyone can pretend not to be bankrupt. That all ended in the recent period. The yen carry trade is blown out, and all that is happening now, is a desperate effort to minimise what has already occurred. The defeat of the Abe Liberal Democratic Party government in Sunday's upper house vote in Japan is but one more signal that the whole yen carry trade debacle is over."

The list of events LaRouche was unimpressed by:

  • In mid-July US$9 billion vaporised when two now infamous Bear Stearns hedge funds collapsed. This was followed by two other U.S. funds, United Capital Asset Management and Braddock Financial Corp.'s Galena Street Fund.

  • In the last fortnight Australia alone has seen three major hedge fund operators come to grief. Firstly, Basis Capital suspended redemptions on two of its funds, then Absolute Capital Management closed two funds, now Macquarie Bank has announced that two of its highly leveraged investment funds will lose at least 25% of their value. This is all on top of the losses of collapsed property investors such as Westpoint, ACR, Fincorp and Bridgeport, which have wiped out hundreds of investors.

  • Not only is the carry trade which has been fuelling the housing bubble, coming to an end, with investors cashing out of their Aussie and NZ dollar investments, but the U.S. subprime crash is merely beginning. The U.S. home foreclosure rate for the first six months of 2007 is up 55% over a year ago, and is up 30% over the previous six months according to a just-released report from RealtyTrac.com.

  • On July 31st Bear Stearns announced that it has halted redemptions from a third hedge fund after being overwhelmed by investors demanding their money back.

  • On the same day Sowood Capital Management LP, a U.S. hedge fund firm run by a former manager of Harvard University's endowment, with more than $3 billion in assets, told its investors that its Alpha funds (Sowood Alpha Fund Ltd and Sowood Alpha Fund LP) lost more than half their value, this month, amid the turmoil caused by the global credit crunch, and it had to sell its portfolio and give its investors whatever might be left over.

  • In Europe, the stocks of Industriekreditbank (IKB), which provides 14 percent of German mittelstand loans, were down 24% in one morning July 30. IKB, now close to default, was engaged on the sub-prime and other such markets in the USA, to the tune of 12.7 billion euros in multi-leveraged loans.

  • And last week, Le Figaro revealed that three French companies were having "problems" with some of their funds involved in the U.S. sub-prime market. Oddo Asset Management, a 23 billion Euro fund announced yesterday that it will proceed to the "liquidation" of three of its funds. AXA, the number one international insurance giant, announced that two of its funds were in trouble, as are two BNP Paribas funds.
  • In the immediate period ahead, LaRouche will be writing a draft election platform for the Democratic Party to address what has to be done. This is the context for the immediate removal of Dick Cheney from office. With the system gone, we need a functioning U.S. Executive branch, and that means Cheney has to be removed from the premises.


    Citizens Electoral Council © 2016
    Best viewed at 1024x768.
    Please provide technical feedback to webadmin@cecaust.com.au
    All electoral content is authorised by National Secretary, Craig Isherwood, 595 Sydney Rd, Coburg VIC 3058.