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Citizens Electoral Council of Australia

Media Release  2nd of March 2010

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

Warning signs increase, nearing ‘Ides of March’

American physical economist Lyndon LaRouche has called the ‘Ides of March’ 2010 a decisive turning point in the history of civilisation, as the leadership of the world, principally U.S. President Barack Obama, neglects to deal with the accelerating economic breakdown crisis engulfing humanity.

Indeed, Obama’s actions, and those of his fellow leaders like Australian Prime Minister Kevin Rudd, are destroying humanity, through brutal austerity measures like gutting healthcare, all the while claiming the economic crisis is in fact over, and that we are in recovery.

However, approaching the crucial Ides of March milestone identified by LaRouche, the warning signs of a worsening crisis are increasing:

AUSTRALIA: Adele Ferguson in Melbourne’s The Age, 2nd March, echoes some of the CEC’s consistent warnings about Australia’s banks, and highlights that Australia’s banks have huge miss-matches between assets and liabilities on call, because they are a target for the carry trade. NAB has $100 billion more in liabilities than assets on call. As of 30th September, 2009, Australian banks also shared $13 trillion in off-balance sheet business (derivatives) exposure: “This is $1.2 trillion lower than the peak a year earlier, but it is still huge”, Ferguson reported, quoting a “well-placed source”: “Compare that with the net equity of the banks, which is a fraction of this; Australia’s GDP each year, which is about $1 trillion; and the US economy, which is about $14 trillion; and our banks have run up $13 trillion of exposure.” [emphasis added] The turnover in this over-the-counter (OTC) derivatives market—“the key cause of the crisis”—was $69.9 trillion in the year to 30th June, 2009, compared to $26.6 trillion in the more traditional exchange traded markets. “Luckily, nothing has gone horribly wrong”, Ferguson wrote [thanks to the government bail-out—Ed.]. “But even if a fraction of a per cent of this off-balance-sheet exposure went wrong, it would put a lot of strain on the banking system.”

UNITED STATES: Jamie Dimon, the parasite who heads the JP Morgan Chase looting apparatus, told his underlings at their recent annual meeting that “investors” should be more worried about the risk of default of the state of California than of Greece’s current debt woes. “There could be a contagion” if a state the size of California has problems making debt payments, the 26th February London Telegraph reported him saying. California poses more of a risk, he said, because of its $20 billion budget deficit—which Nazi Schwarzenegger is trying to reduce by coming up with more ways to kill greater numbers of the state’s population. Last week, John Chiang, the state’s Controller, said that if a workable plan to reduce the deficit and increase cash levels is not reached soon, he will have to return to issuing IOUs, on top of the $3 billion America’s biggest state issued last summer.

EUROPE: Jim Rogers, the former partner of Her Majesty’s private speculator George Soros, told The Guardian that the British pound sterling is a “basket case” of world currencies. “Other currencies aren’t strong and the euro has real problems, with cracks much wider than Greece beginning to show,” Rogers said, “but it’s the pound that’s most vulnerable. In real terms, it’s already devalued against virtually every currency barring the Zimbabwe dollar and it’s especially exposed over the weeks running up to the U.K. election. In a basket of currencies, the pound is potentially a basket case. That will put Britain in an extremely bad position.” Rogers has in the past warned that nitroglycerin can be found under British treasury bonds. Most of that refers to the mountain of bad debt it is holding, of the banks it has bailed out. One of these is Lloyds Banking Group, which announced a £6.3 billion loss for 2009, which follows a loss of £6.7 billion in 2008. It suffered “impairments” (bad loans) of £24 billion. The bank is 41.3 per cent owned by the government. This follows a reported loss by the Royal Bank of Scotland—now 84 per cent owned by the government—of £3.6 billion. Much of this bad debt is from the British housing bubble, which began to collapse two years ago. The slight increase in prices over the last months is proving to have been a dead cat bounce. Housing prices dropped by 1 per cent during February for the first time in 10 months, following a downturn in home sales by 8 per cent.

Lyndon LaRouche will deliver a special webcast address on 14th March, entitled, “The Ides of March 2010”. Tune in for his unmatched analysis of the crisis, and his solutions.

To buy a copy of What Australia Must Do to Survive the Depression, click here.

For a free copy of the feature length DVD detailing the solutions to the global economic crisis, the Homeowners & Bank Protection Bill—The Only Solution, click here. (To purchase a copy click here.)

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