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The New Citizen  Vol 6 No 6
Feb 2008

Only LaRouche Can Solve Global Financial Crash

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.

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Financial Crash Is On!

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