January 25—Sound outrageous?
However, the reality
that only one man, American
economist Lyndon H. LaRouche, Jr., knows how to
solve the greatest financial
collapse in history, will seem
much less so, when you consider
both his unmatched economic
forecasting record over
the last five decades, and that
he has prepared for the present
crash over that entire period.
LaRouche’s record has been
featured in this newspaper over
the last 15 years, and is summarised
in the Citizens Electoral
Council’s 2001 book,
What Australia Must Do to
Survive the Depression. But,
for just a taste of his accuracy,
consider what he told an international
webcast audience on
July 25, 2007, only days before
the “subprime crisis” exploded
into view:
“First of all, this occurs at
a time when the world monetary
financial system is actually
now currently in the process
of disintegrating. There’s nothing
mysterious about this; I’ve
talked about it for some time,
it’s been in progress, it’s not
abating. What’s listed as stock
values and market values in the
financial markets internationally
is bunk! These are purely
fictitious beliefs. There’s no
truth to it; the fakery is enormous.
There is no possibility of
a non-collapse of the present financial system—none! It’s finished,
now!”
As LaRouche emphasised,
the system has already collapsed,
and can never be revived
in its present form, notwithstanding
that world central
banks have poured trillions of
dollars into the markets since
that forecast, US$550 billion
in the second week of December
alone, to no avail: world
stock markets still collapsed on
Monday, January 21 with losses
of over US$1 trillion, which
would have been far worse, had
not U.S markets been closed
for a national holiday. A panicked
U.S. Federal Reserve
then cut interest rates by an
almost unprecedented three quarters
of a percent, to try to
stem the global panic.
This is not a “financial crisis”,
or even a depression like
that of the 1930s, but a collapse
of the globalist system,
like the 14th Century collapse
of the Venetian-run Lombard
system of international usury.
Given that the crisis is systemic,
with hundreds of trillions in
speculative paper sitting atop
a world GDP of perhaps $50
trillion, all of the frantic international
liquidity pumping by
central banks will only bring
on a hyperinflation far worse
than that of Weimar Germany
in 1923. But this time, there
will be no refuge, no “banker
of last resort” like the U.S.
was in 1923.
Consider the Weimar hyperinflation,
to get a taste of what
is now happening worldwide:
From the 1913-1915 period,
Germany’s Reichsmark traded
at around four to the dollar,
rising to some six to the
dollar in 1917 and 1918. But
when the U.S., British, and
French victors in World War I
forced Germany to pay unpayable
“reparations”, the situation
deteriorated rapidly, from
20 Reichsmarks to the dollar
in 1919, to 63 Reichsmarks in
1920, and 105 Reichsmarks in
1921. Then the bottom fell out,
jumping to 1,886 Reichsmarks
in 1922 and an astounding 535
billion Reichsmarks to the dollar
in 1923. During that same
period the cost of living index
soared, from 100 in 1913 to
1,019 in 1920, and a staggering
657 billion on Nov. 23, 1923,
according to the German Statistical
Office.
LaRouche in his January 17
webcast spelt out the only pathway
out of this crisis: the U.S.
must adopt the “firewall” he
has drafted to stop a bottomless
collapse, the Homeowners
and Bank Protection Act 2007
(see p. 4). Other countries,
such as Australia, must enact
similar legislation immediately.
Without that firewall, and
a subsequent reorganisation
of the world financial system,
the world will quickly plunge
into a Dark Age comparable
only to the collapse of the Roman
Empire.