By Lyndon H. LaRouche, Jr.
Today, it was The New York Times’ Binyamin Appelbaum’s turn to bellow into Ben Bernanke’s “bail out” barrel. Technically, the mission, this time, is to “pump up” President Barack Obama’s lurch toward what appears to be his hoped-for “bail-out” boost for his reelection-campaign. This time, the newly launched “Bernanke bail-out” coincides virtually to the date of the announcement of Europe’s biggest hyper-inflationary gamble yet, this time unleashed by Germany’s capitulation to the new round of implicitly hyperinflationary, “Euro” bail-out bubbles. Shades of the closing stage of Weimar Germany 1923.
Were this newly announced Obama policy actually to be unleashed, the evil Satan himself might quickly find himself trapped suddenly in a particular kind of hyper-inflationary Hell. Such is the increasingly probable situation which President Obama and his colleagues have created for themselves.
There is only one measure which could prevent this presently onrushing breakdown from happening now: put President Franklin Roosevelt’s “Glass-Steagall” law into operation immediately, and in Europe as in the U.S.A. Therefore, I refer your immediate attention to the opening, brief paragraphs of today’s feature in the “Business Day” feature of the Times, by Binyamin Appelbaum. It is necessary to absorb the specific flavor from Appelbaum’s following set of opening paragraphs.
“In September 1992, the Federal Reserve culminated a long-running effort to stimulate the sluggish economy by cutting its bench-mark interest rate to 3 percent, the lowest level it had reached in almost three decades
“The cut was avidly sought by the administration of President George H. W. Bush … Years later Mr. Bush told an interviewer that the Fed’s Chairman, had cost him a second term by failing to act more quickly and more forcefully.
“’I reappointed him and he disappointed me,’ Mr. Bush said.
“On Thursday, the Federal Reserve is poised to announce that it will once again seek to stimulate the economy in the middle of a presidential election season…”
‘Nuff said from the Times’ Mr. Appelbaum, who has actually missed the crucial issue of this matter. The result of allowing such a policy will be an immediate, sudden, and extremely violent, trans-Atlantic hyperinflation, combined with hyper-accelerating physical-economic collapse. In fact, the only practicable remedy for the immediate situation would be the sudden institution of the Glass-Steagall reform, if it were instituted in the immediate period before the currently scheduled U.S. Presidential election.
The intention for the proposed, hyperinflationary measure comes chiefly from President Obama and his campaign. What they, in particular, have demanded, is a hyper-inflation which the relevant circles must desperately hope would not occur much before the presently onrushing Presidential election: a clear fraud. This development, by itself, would have immediately deadly effect effects throughout the economy of the planet, especially the combined effect on the trans-Atlantic regions: the collapse of North America and western Europe would be immediate. There would be, suddenly, no functional economy to revive.
Only the willful termination of the Obama and kindred “bail-out” itself, could save the economies at this present juncture.
I have prescribed three leading measures of sudden reform as indispensable measures taken to prevent a general breakdown of the U.S.A. economy itself:
- Immediate institution of Glass-Steagall.
- Immediate institution of national banking.
- Federal funding of major engineering projects of mass employment, including NAWAPA and engineering projects with high energy-flux-density characteristics.
Such immediate reforms echoing the policies of President Franklin D. Roosevelt, and a bit more, are immediately feasible, and now almost desperately urgent. The issue is one of national survival in places including the United States and Europe at this time.