01-04-2008, 12:44 AM
GREENSPANS's WARNING SITUATES GLOBAL CHAOS OPERATIONS
http://larouchepub.com/pr/2007/071231g-span_shrugs.html
American statesman Lyndon LaRouche said today that Alan "Bubbles" Greenspan's dire New Year's Eve warning that "something unexpected" will happen soon, which will "knock us all down," provides the true setting for the unleashing of chaos which is now occurring around the world. LaRouche pointed to Pakistan, Southwest Asia, Kenya, South Africa, Yemen, and the FARC/Chavez moves in Ibero-America as in-progress chaos operations run by the Anglo-Dutch financier crowd.
Ayn Rand devotee and 20-year Fed Chairman Greenspan said in his National Public Radio (NPR) interview, reported in MoneyNews.com today, "What I have to forecast is that something will happen which is unexpected, which will knock us down.... The odds of that happening, I think, are rising, because we are getting in vulnerable areas."
Greenspan added, "What I point out is that we're in a turning phase, and that the extraordinary improvements that have occurred in the world economy in the last 15 years are transitory, and they're about to change ... So, I think this whole process will begin to reverse."
Interest rates, Greenspan said, "now are set by the supply of investment money worldwide; a force much larger than the concerted efforts of central banks, including the Fed.... We and all other central banks lost control of the forces directing higher prices in homes."
Greenspan admitted his miserable record at forecasting, despite sitting at the helm of the Fed for nearly two decades: "The record of forecasting not only of myself and of companies I have developed, but of the profession as a whole, is not particularly spectacular," Greenspan said. "Ive been forecasting since the early 1950s. I was as bad then as I am now." Apparently, a belated confession of an economic ____ (rhymes with hitman).
ANOTHER LACKEY FOR THE OLIGARCHY ADMITS:
"WHOLE WORLD GOING OVER THE PRECIPICE"
http://larouchepac.com/news/2008/01/03/a...preci.html
In the most dire words, French commentator Jacques Attali, a longtime lackey for the financial oligarchy, and former adviser to French President Francois Mitterand, calls the world financial system, bankrupt. Writing in his column in the weekly l'Express today, he says, "It is the whole world which seems to be going over the precipice. As if a collision of trains going at full speed was being prepared. As if, in a vortex emptying the bottom of a bathtub...." there is no stability in sight for the global economy.
"That the murder of an opposition leader of a country of the South would so gravely shake the Asian financial markets, and with them those of the entire world, reveals the extreme fragility of the planet," writes Jacques Attali, referring to the murder of former Pakistani Prime Minister Benazir Bhutto. Attali says that "Beyond the sub-primes, many other debts are circulating and no one knows how the banks will be able to honor them: those of hedge funds, of monoline insurers, of LBO funds, and of holders of credit cards, which form a pyramid amounting much more than the bank's own funds, which would have been closed a long time ago, had the central banks not agreed to refinance them all without restraint."
The European Union is in such bad straits, "with an Italy going financially adrift, to such an extent that the very existence of the euro could be put into question by speculators attacking the Rome Treasury."
He even adds to this already poisonous mix, the crises of the Middle East, and the growth of world poverty. But, like other appendages of the Anglo-Dutch oligarchical system, Attali will not admit that it is gone forever, and must be replaced with the kind of financial reorganization represented by Lyndon LaRouche's New Bretton Woods monetary system, and emergency action in the United States embodied in the Homeowners and Bank Protection Act. Instead he only lists the symptoms, as if he were examining a live patient, not a corpse.
ECB CHURNING LIQUIDITY IN FUTILE EFFORT TO SAVE SYSTEM
http://larouchepac.com/news/2008/01/03/e...ystem.html
In a schizophrenic drive to save the financial system, the European Central Bank yesterday again "mopped up" some of the hundreds of billions of dollars in liquidity that it had pumped into the collapsing interbank market over the past few weeks -- while then adding today, about another $200 billion in new liquidity to the system.
The ECB drained about $300 billion out of the system, in the last few days, re-absorbing part of the flood of liquidity that it had poured out as part of an unprecedented coordinated action by central banks starting in mid-December. Last week, the ECB had drained out another $150 billion, and more is expected to be mopped up on Friday, Jan. 4, even after pumping new liquidity in on Thursday.
Reportedly, the ECB has vast difficulty in creating "equilibrium conditions" on the markets, because banks "remain unwilling to lend among one another," since they are unable to measure the exact degree of exposure to the damage caused by the subprime blow-out.
Leading economist Lyndon LaRouche said that the ECB draining the liquidity from the banks was one of examples of financial turbulence that he expected would hit on January 3. The point is, there is no monetarist solution, he said, even though the financiers keep looking for one. The only way to understand the crisis now faced is from the global standpoint, LaRouche reiterated.
YOU HAVE A SINGLE, GLOBAL FINANCIAL COLLAPSE .., NOT "HOTSPOTS"
http://larouchepac.com/news/2008/01/02/l...hotsp.html
Lyndon LaRouche called for a world color mapping of the severity of national dissolution and potential genocide crises, for both the Feature coverage of EIR Number 2 and the LPAC website, in order "to make clear that you have a global financial breakdown and a single, global British chaos strategy, not 'hotspots.' If you think of this and try to describe each threatened national dissolution--Kenya, Pakistan, Lebanon, Bolivia, Thailand--as a 'hotspot' first, you have it wrong," LaRouche said. Chaos and ungovernability are the British Empire's strategy of "governing" through a financial breakdown collapse--coming out on top in the endgame, by destroying all the other players, and blocking all national debate and action on the solution.
"This is what they're doing worldwide, LaRouche said. It's one chaos policy. And those writers and 'experts' who are talking about 'Anglo-American' destabilizations--they should cut it out; whose agent is Dick Cheney, anyway? Who does George Shultz work with, who selected Cheney?
This is the British Empire. It is the London Economist, the leading mouthpiece of London's financial empire, which has just warned Thai leader Thaksin that "he is the Benazir Bhutto of Thailand." It is British MPs who have been found to be funding Baluchi fundamentalist separatists in Pakistan; British MI-6 agents just expelled from Afghanistan for guiding and funding the Taliban; British Iraq policy which set up the invasion and then the conditions for the breakup of Iraq between southern, central, and Kurdish regions. Now, in a serious blunder, Pakistani President Musharraf has been induced to announce in a national address, that he is calling in Scotland Yard teams to investigate Benazir Bhutto's murder. It is a British Liberal Democrat in the House of Lords who is the "gamemaster" (see report below) of the outbreak of riots in Kenya, now leading rapidly to ethnic cleansing and threatening genocide. It was Britain's ambassador, confronting the U.S. ambassador on CNN today, demanding that the Kenya election be scrapped and started over amidst rioting and hundreds already dead.
The reason? The City of London knows--and even half-acknowledges, in its financial press and statements of the Bank of England--that the global monetary system is blown out, and a final disintegration of banking systems is under way. The year of hyperinflation, 2008, began today in spectacular fashion: Gold reached an all-time record of $860, rising 3% on the first business day of the year; oil passed $100 a barrel, rising 2% for the day; wheat and other agricultural commodities rose 2-3% in wholesale price today; stock markets fell and the leading indicator of industrial production in the United States, the ISM index, showed a "totally unexpected" 4% drop in one month! And today, the "Basel II" changes in bank-capital deregulation went into effect, backfiring with exactly the opposite impact on banks than intended when they were designed--because the banking system is in the middle of a crash. "Big banks will shrink, and small and middle-sized banks will disappear," was the way financial insiders in New York and Europe characterized the situation.
The only sane answer to such a complete financial disintegration underway, threatening dark age conditions, is for nations to rapidly place "firewalls" of national protection around chartered banks, industry, and households to protect them from the crash; and for a group of major nations to establish a new monetary system, a New Bretton Woods, to replace the collapsed IMF system. This is LaRouche's policy, the Homeowners and Bank Protection Act (HBPA), Economic Recovery Act, and the "four-power" approach to a New Bretton Woods by cooperation of the United States, Russia, China, and India with other nations.
The insane policy of the Anglo-Dutch financial oligarchy to prevent such national moves--or even serious debate and discussion of them--is chaos, destruction of national sovereignty, breakup of nations, even ethnic genocide.
Thus we see, and have to map out, not "crisis hotspots" with their own local scenarios, but a single global policy of chaos, assassinations, existential national crises, like that which leads to world war. And we have to expose it, and defeat it with national mobilizations modelled on the HBPA.
HARSH WARNINGS FOR 2008: BANK LENDING WILL SHRINK $4 TRILLION
http://larouchepac.com/news/2008/01/02/h...-says.html
There will for sure be a lot of financial pain, soon, wrote Daily Telegraph financial columnist Ambrose Evans-Pritchard today. For most of the past year, Evans-Pritchard has been echoing the forecasts by Lyndon LaRouche, that the current financial system has gone down.
Real estate bubbles will burst all over Europe, Evans-Pritchard wrote, a "version of the East Asia 1998 crisis [will hit] half the ex-Communist bloc"; Japan will crash due to an 18% rise of the yen against the dollar; but China will not be able to step into world lending, especially to emerging markets, because of "credit tightening and yuan appreciation" by Beijing.
Overall there will be massive rate cuts by the central banks, with inflation to follow. In the "Anglo-Saxon" sector of the world, the populations' personal losses will "mount to $1 trillion, entailing a $4 trillion contraction in lending." Everywhere else in Europe, the high euro will kill every economy outside Germany, and the euro accord will crack. French president Nicolas Sarkozy will react and increase his war against the European Central Bank, and the restrictions imposed by the Maastricht treaty, Evans-Pritchard wrote. Finally, Hillary Clinton will take the White House, with Democrats in control of both Houses.
Telegraph Business desk chief Damian Reece warned that Chancellor of the Exchequer Alastair Darling is not long for political office, after Northern Rock is nationalised. "Having succeeded the UK's longest continuously-serving Chancellor, Darling is likely to become one of the UK's shortest-serving Chancellors. He has to be favourite among the Cabinet to be moved on come a spring reshuffle."
HEDGE FUND HIGH FLIER SAYS BANKS ARE GOING DOWN
The big banks will shrink, and the smaller banks just disappear in the coming financial meltdown, French hedge fund big name Arpad Busson told The Times of London in an interview Dec. 31. Busson is known for warning in 1987 that the financial system was on the way to meltdown, in the crisis forecast by Lyndon LaRouche earlier that year.
Busson told The Times three days ago: "This is the first time in my 21 years in the business that I've seen systemic risk. I think we are now one-third of the way through the banking problem.... The big banks can battle against these massive write downs. They can shrink," he said. "What I'm concerned about is the medium-sized and small banks. This is going to create another round of consolidation among banks, which is a pity if you end up with ten banks that control the world."
'THE NEXT DOMINO ' IN THE CRASH IS THE BIGGEST : FINANCIAL DERIVATIVES
http://larouchepac.com/news/2008/01/02/n...tives.html
With ripples from the financial crash already hitting the real U.S. economy and companies, it will only take a rise in corporate debt defaults to 5% from the current 1.4%, to blow up a derivatives market far larger than anything that has crashed so far. This is the $45-50 trillion mass of financial derivatives called credit default swaps (CDS), which have ballooned tenfold in three years, and are called "the next domino" in the crash for early 2008 by one New York financial manager, who says it will be "far more severe" than anything that has happened so far in the mortgage meltdown and otherwise.
Again, banks are in the greatest danger of going under in this potential $45-50 trillion blowup; it is banks--not the "monoline" bond insurance companies already reported in big trouble--which have issued 44% of all CDS, and hedge funds another 22%. Fitch Ratings Agency is already projecting a corporate bond and loan default rate of 4-5% in the first half of 2008--particularly by home builders and commercial real estate companies in the United States and Europe--enough to collapse a large chunk of the CDS bubble.
The financial manager compared the CDS bubble to a huge, brand-new insurance industry whose providers reserve nothing for future losses. "Imagine what will happen if $45 trillion ... experiences an actuarial average of 5% losses, and no one [in the banks] has $2.25 trillion sitting around to foot the bill!"
http://larouchepub.com/pr/2007/071231g-span_shrugs.html
American statesman Lyndon LaRouche said today that Alan "Bubbles" Greenspan's dire New Year's Eve warning that "something unexpected" will happen soon, which will "knock us all down," provides the true setting for the unleashing of chaos which is now occurring around the world. LaRouche pointed to Pakistan, Southwest Asia, Kenya, South Africa, Yemen, and the FARC/Chavez moves in Ibero-America as in-progress chaos operations run by the Anglo-Dutch financier crowd.
Ayn Rand devotee and 20-year Fed Chairman Greenspan said in his National Public Radio (NPR) interview, reported in MoneyNews.com today, "What I have to forecast is that something will happen which is unexpected, which will knock us down.... The odds of that happening, I think, are rising, because we are getting in vulnerable areas."
Greenspan added, "What I point out is that we're in a turning phase, and that the extraordinary improvements that have occurred in the world economy in the last 15 years are transitory, and they're about to change ... So, I think this whole process will begin to reverse."
Interest rates, Greenspan said, "now are set by the supply of investment money worldwide; a force much larger than the concerted efforts of central banks, including the Fed.... We and all other central banks lost control of the forces directing higher prices in homes."
Greenspan admitted his miserable record at forecasting, despite sitting at the helm of the Fed for nearly two decades: "The record of forecasting not only of myself and of companies I have developed, but of the profession as a whole, is not particularly spectacular," Greenspan said. "Ive been forecasting since the early 1950s. I was as bad then as I am now." Apparently, a belated confession of an economic ____ (rhymes with hitman).
ANOTHER LACKEY FOR THE OLIGARCHY ADMITS:
"WHOLE WORLD GOING OVER THE PRECIPICE"
http://larouchepac.com/news/2008/01/03/a...preci.html
In the most dire words, French commentator Jacques Attali, a longtime lackey for the financial oligarchy, and former adviser to French President Francois Mitterand, calls the world financial system, bankrupt. Writing in his column in the weekly l'Express today, he says, "It is the whole world which seems to be going over the precipice. As if a collision of trains going at full speed was being prepared. As if, in a vortex emptying the bottom of a bathtub...." there is no stability in sight for the global economy.
"That the murder of an opposition leader of a country of the South would so gravely shake the Asian financial markets, and with them those of the entire world, reveals the extreme fragility of the planet," writes Jacques Attali, referring to the murder of former Pakistani Prime Minister Benazir Bhutto. Attali says that "Beyond the sub-primes, many other debts are circulating and no one knows how the banks will be able to honor them: those of hedge funds, of monoline insurers, of LBO funds, and of holders of credit cards, which form a pyramid amounting much more than the bank's own funds, which would have been closed a long time ago, had the central banks not agreed to refinance them all without restraint."
The European Union is in such bad straits, "with an Italy going financially adrift, to such an extent that the very existence of the euro could be put into question by speculators attacking the Rome Treasury."
He even adds to this already poisonous mix, the crises of the Middle East, and the growth of world poverty. But, like other appendages of the Anglo-Dutch oligarchical system, Attali will not admit that it is gone forever, and must be replaced with the kind of financial reorganization represented by Lyndon LaRouche's New Bretton Woods monetary system, and emergency action in the United States embodied in the Homeowners and Bank Protection Act. Instead he only lists the symptoms, as if he were examining a live patient, not a corpse.
ECB CHURNING LIQUIDITY IN FUTILE EFFORT TO SAVE SYSTEM
http://larouchepac.com/news/2008/01/03/e...ystem.html
In a schizophrenic drive to save the financial system, the European Central Bank yesterday again "mopped up" some of the hundreds of billions of dollars in liquidity that it had pumped into the collapsing interbank market over the past few weeks -- while then adding today, about another $200 billion in new liquidity to the system.
The ECB drained about $300 billion out of the system, in the last few days, re-absorbing part of the flood of liquidity that it had poured out as part of an unprecedented coordinated action by central banks starting in mid-December. Last week, the ECB had drained out another $150 billion, and more is expected to be mopped up on Friday, Jan. 4, even after pumping new liquidity in on Thursday.
Reportedly, the ECB has vast difficulty in creating "equilibrium conditions" on the markets, because banks "remain unwilling to lend among one another," since they are unable to measure the exact degree of exposure to the damage caused by the subprime blow-out.
Leading economist Lyndon LaRouche said that the ECB draining the liquidity from the banks was one of examples of financial turbulence that he expected would hit on January 3. The point is, there is no monetarist solution, he said, even though the financiers keep looking for one. The only way to understand the crisis now faced is from the global standpoint, LaRouche reiterated.
YOU HAVE A SINGLE, GLOBAL FINANCIAL COLLAPSE .., NOT "HOTSPOTS"
http://larouchepac.com/news/2008/01/02/l...hotsp.html
Lyndon LaRouche called for a world color mapping of the severity of national dissolution and potential genocide crises, for both the Feature coverage of EIR Number 2 and the LPAC website, in order "to make clear that you have a global financial breakdown and a single, global British chaos strategy, not 'hotspots.' If you think of this and try to describe each threatened national dissolution--Kenya, Pakistan, Lebanon, Bolivia, Thailand--as a 'hotspot' first, you have it wrong," LaRouche said. Chaos and ungovernability are the British Empire's strategy of "governing" through a financial breakdown collapse--coming out on top in the endgame, by destroying all the other players, and blocking all national debate and action on the solution.
"This is what they're doing worldwide, LaRouche said. It's one chaos policy. And those writers and 'experts' who are talking about 'Anglo-American' destabilizations--they should cut it out; whose agent is Dick Cheney, anyway? Who does George Shultz work with, who selected Cheney?
This is the British Empire. It is the London Economist, the leading mouthpiece of London's financial empire, which has just warned Thai leader Thaksin that "he is the Benazir Bhutto of Thailand." It is British MPs who have been found to be funding Baluchi fundamentalist separatists in Pakistan; British MI-6 agents just expelled from Afghanistan for guiding and funding the Taliban; British Iraq policy which set up the invasion and then the conditions for the breakup of Iraq between southern, central, and Kurdish regions. Now, in a serious blunder, Pakistani President Musharraf has been induced to announce in a national address, that he is calling in Scotland Yard teams to investigate Benazir Bhutto's murder. It is a British Liberal Democrat in the House of Lords who is the "gamemaster" (see report below) of the outbreak of riots in Kenya, now leading rapidly to ethnic cleansing and threatening genocide. It was Britain's ambassador, confronting the U.S. ambassador on CNN today, demanding that the Kenya election be scrapped and started over amidst rioting and hundreds already dead.
The reason? The City of London knows--and even half-acknowledges, in its financial press and statements of the Bank of England--that the global monetary system is blown out, and a final disintegration of banking systems is under way. The year of hyperinflation, 2008, began today in spectacular fashion: Gold reached an all-time record of $860, rising 3% on the first business day of the year; oil passed $100 a barrel, rising 2% for the day; wheat and other agricultural commodities rose 2-3% in wholesale price today; stock markets fell and the leading indicator of industrial production in the United States, the ISM index, showed a "totally unexpected" 4% drop in one month! And today, the "Basel II" changes in bank-capital deregulation went into effect, backfiring with exactly the opposite impact on banks than intended when they were designed--because the banking system is in the middle of a crash. "Big banks will shrink, and small and middle-sized banks will disappear," was the way financial insiders in New York and Europe characterized the situation.
The only sane answer to such a complete financial disintegration underway, threatening dark age conditions, is for nations to rapidly place "firewalls" of national protection around chartered banks, industry, and households to protect them from the crash; and for a group of major nations to establish a new monetary system, a New Bretton Woods, to replace the collapsed IMF system. This is LaRouche's policy, the Homeowners and Bank Protection Act (HBPA), Economic Recovery Act, and the "four-power" approach to a New Bretton Woods by cooperation of the United States, Russia, China, and India with other nations.
The insane policy of the Anglo-Dutch financial oligarchy to prevent such national moves--or even serious debate and discussion of them--is chaos, destruction of national sovereignty, breakup of nations, even ethnic genocide.
Thus we see, and have to map out, not "crisis hotspots" with their own local scenarios, but a single global policy of chaos, assassinations, existential national crises, like that which leads to world war. And we have to expose it, and defeat it with national mobilizations modelled on the HBPA.
HARSH WARNINGS FOR 2008: BANK LENDING WILL SHRINK $4 TRILLION
http://larouchepac.com/news/2008/01/02/h...-says.html
There will for sure be a lot of financial pain, soon, wrote Daily Telegraph financial columnist Ambrose Evans-Pritchard today. For most of the past year, Evans-Pritchard has been echoing the forecasts by Lyndon LaRouche, that the current financial system has gone down.
Real estate bubbles will burst all over Europe, Evans-Pritchard wrote, a "version of the East Asia 1998 crisis [will hit] half the ex-Communist bloc"; Japan will crash due to an 18% rise of the yen against the dollar; but China will not be able to step into world lending, especially to emerging markets, because of "credit tightening and yuan appreciation" by Beijing.
Overall there will be massive rate cuts by the central banks, with inflation to follow. In the "Anglo-Saxon" sector of the world, the populations' personal losses will "mount to $1 trillion, entailing a $4 trillion contraction in lending." Everywhere else in Europe, the high euro will kill every economy outside Germany, and the euro accord will crack. French president Nicolas Sarkozy will react and increase his war against the European Central Bank, and the restrictions imposed by the Maastricht treaty, Evans-Pritchard wrote. Finally, Hillary Clinton will take the White House, with Democrats in control of both Houses.
Telegraph Business desk chief Damian Reece warned that Chancellor of the Exchequer Alastair Darling is not long for political office, after Northern Rock is nationalised. "Having succeeded the UK's longest continuously-serving Chancellor, Darling is likely to become one of the UK's shortest-serving Chancellors. He has to be favourite among the Cabinet to be moved on come a spring reshuffle."
HEDGE FUND HIGH FLIER SAYS BANKS ARE GOING DOWN
The big banks will shrink, and the smaller banks just disappear in the coming financial meltdown, French hedge fund big name Arpad Busson told The Times of London in an interview Dec. 31. Busson is known for warning in 1987 that the financial system was on the way to meltdown, in the crisis forecast by Lyndon LaRouche earlier that year.
Busson told The Times three days ago: "This is the first time in my 21 years in the business that I've seen systemic risk. I think we are now one-third of the way through the banking problem.... The big banks can battle against these massive write downs. They can shrink," he said. "What I'm concerned about is the medium-sized and small banks. This is going to create another round of consolidation among banks, which is a pity if you end up with ten banks that control the world."
'THE NEXT DOMINO ' IN THE CRASH IS THE BIGGEST : FINANCIAL DERIVATIVES
http://larouchepac.com/news/2008/01/02/n...tives.html
With ripples from the financial crash already hitting the real U.S. economy and companies, it will only take a rise in corporate debt defaults to 5% from the current 1.4%, to blow up a derivatives market far larger than anything that has crashed so far. This is the $45-50 trillion mass of financial derivatives called credit default swaps (CDS), which have ballooned tenfold in three years, and are called "the next domino" in the crash for early 2008 by one New York financial manager, who says it will be "far more severe" than anything that has happened so far in the mortgage meltdown and otherwise.
Again, banks are in the greatest danger of going under in this potential $45-50 trillion blowup; it is banks--not the "monoline" bond insurance companies already reported in big trouble--which have issued 44% of all CDS, and hedge funds another 22%. Fitch Ratings Agency is already projecting a corporate bond and loan default rate of 4-5% in the first half of 2008--particularly by home builders and commercial real estate companies in the United States and Europe--enough to collapse a large chunk of the CDS bubble.
The financial manager compared the CDS bubble to a huge, brand-new insurance industry whose providers reserve nothing for future losses. "Imagine what will happen if $45 trillion ... experiences an actuarial average of 5% losses, and no one [in the banks] has $2.25 trillion sitting around to foot the bill!"