As of Monday, Aug. 24, the entire trans-Atlantic system is over, Lyndon LaRouche stated yesterday. We are now facing a global, systemic meltdown of the system, which is going to produce wild, unpredictable effects across the planet in the days and weeks ahead. We will see a new pattern emerge by the end of this week, and outside of LaRouche and his associates, no one is able to cope with what is coming.
No one at this point knows the depth of the crisis, LaRouche said, but what is clear is that we are facing an unstoppable, general collapse of the global system. That means that we have to foreclose on all of Wall Street’s phoney assets, put them entirely out of business, and quickly proceed to build the physical economy in the United States and internationally.
LaRouche ridiculed the idea that the so-called “Black Monday” stock market meltdown of Aug. 24 was the cause of the crisis; the crash was only a display of the fact that the markets are starting to catch up with the reality of the system’s total bankruptcy. It is also wrong to blame China for the crisis. They have been put through the wringer, because of the global trade collapse which affects their economy significantly, but they are not the cause, LaRouche emphasized.
The epicenter is the trans-Atlantic financial system: that is where the real crash is underway. Countries like China, India, and other BRICS nations, and those associated with them, have better chances of surviving the maelstrom. The United States has no chance of survival, LaRouche said, unless we quickly implement the policies that I have specified: an immediate return to FDR’s Glass-Steagall reorganization of the financial system, replacing it with a Hamiltonian credit system that will provide credit for projects that productively employ our population, and enhance their scientific and cultural capabilities. The physical economy can rebound with this change in policy.
To launch that, we must immediately replace the Obama Presidency with one capable of addressing the crisis. Obama is still out to launch thermonuclear war against Russia and China, driven by the financial crisis, and his removal from office is therefore doubly urgent. A Presidential team to replace him is critical, LaRouche emphasized, not a single individual. As of this week, Hillary Clinton is a hopeless consideration, because she has aligned herself fully with Wall Street, through her terror-driven compact with Obama. You have the same mess on the Republican side; “and don’t be a Trump for Wall Street,” LaRouche added.
This reality is what is driving everything. The only thing that is fixed, is that we have entered a period of permanent crisis.
Our job includes educating people, as we are doing in LaRouche’s Manhattan Project, to develop in them the capabilities of what the new economy will require of mankind. Our touchstones are classical music education, and China’s scientific program centered on their lunar program for the mining of Helium-3 for fusion energy development. These are the kinds of new capabilities which mankind now requires.
With their entire international financial system crumbling around them, in “the biggest financial crisis in modern history,” as Lyndon LaRouche called it, the only thing that the bankrupt predators of Wall Street and the City of London can think of, is how to get their next financial fix of bailout funds.
The desperate calls for responding to what they call “Black Monday” with massive additional quantitative easing (QE), are quite explicit. Larry Elliott, writing in the Guardian today, admitted that the problem is that
“For the last seven years, they [the markets] have been given regular doses of strong and dangerous narcotics. The threat that the drugs will no longer be available has resulted in severe withdrawal symptoms… The markets have been pumped full of stimulants in the form of quantitative easing.”
What to do? Well, more of the same, of course! Elliott suggests that “the Fed might need to provide more stimulus… contemplate further rounds of QE, even though that amounts to doubling the dosage for drugs that become less effective every time they are administered.”
The rest of the financial press, such as London’s FT Alphaville, says pretty much the same thing: “We’ve long felt that the only thing preventing another financial crisis has been extraordinary central bank liquidity and general interventions from the global authorities, which we still expect to continue for a long while yet.”
Last night and today, major central bank and related stock-purchasing interventions across the trans-Atlantic sector, apparently provided enough numbing agent to allow the European market and U.S. futures market to post moderate gains for most of today, though there was a rush for the doors in the last hour of U.S trading, ending in further losses. China’s Shanghai index, fell another 7.6% on Tuesday, as the financial press continued to protest that Chinese authorities are not stepping in with the kind of bailout that the speculators want. China did lower benchmark interest rates by .25% today to 4.6%, and also dropped the reserve ratio by 0.5% to 16%.
Just in time for the systemic meltdown, the financial junkies will hold their annual meeting at Jackson Hole, Wyoming, later this week, Aug. 27-29. The world’s central bankers will gather there, and the key speech will be given by Fed vice chairman Stanley Fischer on Aug. 29. Fed chair Janet Yellen will not be attending this year.
Jacques Cheminade, President of the Solidarité et Progrès political party in France, issued the following statement on “Black Monday,” Aug. 24, 2015. The following is translated from the original French:
“A global Glass-Steagall is necessary in order to eliminate the system of the City of London and Wall Street and of their European collaborators.
“I will endeavor to unite the forces capable of resistance in fighting for a project of mutual development, a policy for public credit for investment in infrastructure, and a New Bretton Woods system purged of monetarist privilege. With this aim in mind, I call on those to join me on an emergency basis, including the decisive participation of the BRICS, in an international conference for peace through mutual development, wiping out illegitimate debt and restoring priority to that which is human in mankind: the spirit of discovery and of service to the common good and coming generations.
“This is no longer a G7, G8, or G20; the days of compromise without substance are over. For we must rise to the challenge of the future of human civilization and halt the flight forward into self-destruction and war.”