“The world financial system is actually now, currently, in the process of disintegrating ... There is no possibility of a non-collapse of the present financial system—none! It’s finished, now!”
—American statesman and physical economist Lyndon H. LaRouche, Jr., July 25, 2007 international Webcast.

As of this weekend, Wall Street investment banks and brokerage giants Lehman Brothers and Merrill Lynch have both collapsed, Lehman Brothers into actual bankruptcy and Merrill Lynch into a takeover by Bank of America. Insurance giant AIG is also headed for bankruptcy, and a host of others are set to follow, including Goldman Sachs, Morgan Stanley, and Washington Mutual.

Australia is directly exposed: More than 150 Australian clients of Lehman Brothers, including dozens of local councils, charities, churches and hospitals, have around $2 billion invested in Lehman Brothers’ derivatives, all or most of which they have now lost; more importantly, all of Australia’s major banks are heavily exposed to the $700 trillion global over-the-counter derivatives bubble (click here), which could now go into a chain-reaction collapse detonated by Lehman Brothers’ bankruptcy.

LaRouche has specified three urgent measures to bring the crisis under control:

1. The U.S. Congress (and the Australian Parliament) must immediately enact the LaRouche-drafted Homeowners and Bank Protection Bill to stop mass home foreclosures, and to save the vital features of the banking system by putting it through government-supervised bankruptcy reorganisation, freezing or writing off trillions in speculative paper,
2. The U.S. Government (and the Australian Government) must enact a two-tier credit system, to provide preferential, cheap credit for actual physical production, in particular to create huge infrastructure projects (including in water and transport) to create millions of jobs, and
3. The U.S. must initiate a Four Power Alliance between itself, U.S., Russia, China and India to anchor the construction of a new international monetary system, a “New Bretton Woods” system of sovereign nation states centred on national banking and protective tariffs, to replace the disastrous City of London/Wall St. globalist system.

For more information, and to help save this country from disaster, call the CEC at 1800-636-432.

For LaRouche’s analysis of the insane bailout of Fannie and Freddie, click here to read the pamphlet “Tantamount to Treason”.
For a complimentary copy of 1932, the documentary which shows the historical reasons for the global financial crisis, click here.