01-19-2008, 11:44 PM
LAROUCHE WARNS OF IMMINENT HYPERINFLATIONARY BLOWOUT
http://larouchepac.com/news/2008/01/22/l...owout.html
The fevered efforts to save the financial system, typified by today's panicked three-quarter-point interest rate cut by the Federal Reserve and the Bush/Paulson stimulus plan not only will not work, but will backfire spectacularly, and soon, economist Lyndon LaRouche warned today. The financial system is dead, and any attempt to save the fictitious values of the trillions of dollars of worthless financial paper will not only fail, but will destroy any nation foolish enough to attempt to do so, LaRouche said.
The global financial system, emphatically including the United States, is entering a period comparable to that of Weimar Germany in the Autumn of 1923, but on a far larger scale. Whereas the damage from the runaway hyperinflation in Weimar Germany was largely restricted to Germany itself, the current crisis is global in scale. No national system will survive its effects, and the nations might not even survive the present year, he warned.
Under the Versailles Treaty ratified at the end of World War I, Germany was hit with war-reparation payments so high as to make it impossible for the nation to function. To meet its obligations, Germany began printing money, funding its reparations payments and the needs of its economy at the cost of debasing its currency. The monetary stimulation soared to such unprecedented heights that the term hyperinflation was coined to distinguish its debilitating horror.
As the German economy began to shut down, the government responded by printing more money as a stimulus, and the value of the Reichsmark began to plummet. During the 1913-1915 period the Reichsmark was in the range of four to the dollar, rising to some six to the dollar in 1917 and 1918. The situation began to deteriorate badly thereafter, 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.
The world is now approaching a Weimar-style hyper-inflationary collapse, for similar reasons. The actions of the Federal Reserve and the European Central Bank, as well as other central banks and the governments themselves, their determination to try to stimulate the dead corpse of this financial system back to life, their blind refusal to recognize the truth, is the making of a classical tragedy. Gripped by fear, these modern-day Hamlets are choosing to destroy all they hold dear, rather than break with their belief in failed monetary policies.
The nations of Europe, under the sovereignty-killing Maastricht treaty agreements, have abandoned their capabilities to react to this crisis, so it falls to the United States, under the powers and responsibilities vested in it by the Constitution, to lead the rescue of not only itself, but the world as a whole. Rather than continuing the foolish attempts to stimulate the corpse, the United States Government must use its sovereign powers to put its own financial system through bankruptcy proceedings, setting a precedent and providing the context in which other nations can act. The crucial first step is the passage of LaRouche's Homeowners and Bank Protection Act, which will erect the fire-walls necessary to protect the public and essential aspects of economic infrastructure to keep the economy functioning as the damage is sorted out.
THE REAL SERIOUS HYPERINFLATION BEGINS
http://larouchepac.com/news/2008/01/22/r...egins.html
After surveying the events since the beginning of this week, Lyndon LaRouche has now announced the beginning of a new educational campaign. The education will have a singular focus, hyperinflation.
100 Trillion German Mark:
The pinnacle of German hyperinflation.The historical reference for this topic occurred less than 5 generations ago, in pre-World War II Germany. Being surrounded by both the French and the British armies, the German government was forced, under the demands of the Versailles Treaty, to pay war reparations. These reparations were, of course, designed to be unpayable. Germany had no choice: "Pay, or we kill you!"
We, now, in the United States face almost the same situation. But this time, no external enemy force is demanding we try to settle the unpayable mass of financial paper that's currently in the process of hyperinflating the U.S. Dollar. We face an internal enemy, one which has been woven quite effectively into the moral fabric of our country over the past 40 years; the same moral decadence that enabled citizens of this country to tolerate financial pyramid schemes, the largest of which is coming down now: mortgages and its related financial paper.
There is another crucial historical difference between the two. In 1923, the German Reichmark was not the world's most powerful currency. Today, our U.S. Dollar is. We bear that responsibility to change our own personal, cultural habits, to use the power of the sovereignty of our Federal Constitution and put the entire U.S. Dollar system into bankruptcy reorganization. We are the only nation in the world with that unique ability.
Some might say, "Well, where's our Hitler?" Open your eyes buddy! Bloomberg and Arnie 'My father was a Nazi' Schwarzenegger, represent our Hitler potential. Mussolini-style Corporatism and Nazi-like austerity are knocking on the door.
So, reflecting on the outright assholes and idiots pushing "economic stimulus packages", think: "Gee, maybe a trip to the firing squad is not the kind of stimulation I'm looking for."
RUSSIANS CLINGING TO ILLUSIONS ABOUT RUSSIA AS A "HAVEN" FROM HYPERINFLATION
http://larouchepac.com/news/2008/01/23/r...latio.html
Senior Russian officials and politicians are clinging to their illusions that somehow, the international hyperinflationary crisis will only have a passing effect on Russia. Following Russian presidential candidate Dmitry Medvedyev's statement last week that 2008 might not be so bad, yesterday, Gennady Melikyan, Senior Deputy Chairman of the Russian Central Bank, told the press that while the crisis will go on in the West, Russia can survive without great problems, RosBusinessConsulting reported today. Melikyan, speaking in Tula, said that the "current negative situation on world markets has affected the Russian Federation. It is too early to relax, but there is certainty that we will be able to survive this quietly. There is no fatal danger of a crisis" in Russia, which is protected, he said, by its high level of foreign exchange reserves.
Russian Finance Minister Alexei Kudrin is also apparently suffering from the "money is economy" disease, since he said today at the World Economic Forum in the Swiss ski resort Davos, that Russia will offer a "haven of stability" amidst the financial turbulence. Kudrin was quoted by Novosti, saying: "In the past few years Russia has managed to achieve economic stability piling up substantial international reserves, which play the role of an airbag. I believe Russia will soon be the focus of attention as a haven of stability.... As a country with substantial reserves, Russia could help soothe the global crisis."
It would be beyond foolish for the Russian leadership to continue to deny the systemic scope of the hyperinflationary crisis. Hyperinflation is now the driving characteristic feature of the world economic system, and only a radical change in the supposed "rules of the game", could yield the potential solution.
Now is not the time for conventional, popularly accepted economic theory.
http://larouchepac.com/news/2008/01/22/l...owout.html
The fevered efforts to save the financial system, typified by today's panicked three-quarter-point interest rate cut by the Federal Reserve and the Bush/Paulson stimulus plan not only will not work, but will backfire spectacularly, and soon, economist Lyndon LaRouche warned today. The financial system is dead, and any attempt to save the fictitious values of the trillions of dollars of worthless financial paper will not only fail, but will destroy any nation foolish enough to attempt to do so, LaRouche said.
The global financial system, emphatically including the United States, is entering a period comparable to that of Weimar Germany in the Autumn of 1923, but on a far larger scale. Whereas the damage from the runaway hyperinflation in Weimar Germany was largely restricted to Germany itself, the current crisis is global in scale. No national system will survive its effects, and the nations might not even survive the present year, he warned.
Under the Versailles Treaty ratified at the end of World War I, Germany was hit with war-reparation payments so high as to make it impossible for the nation to function. To meet its obligations, Germany began printing money, funding its reparations payments and the needs of its economy at the cost of debasing its currency. The monetary stimulation soared to such unprecedented heights that the term hyperinflation was coined to distinguish its debilitating horror.
As the German economy began to shut down, the government responded by printing more money as a stimulus, and the value of the Reichsmark began to plummet. During the 1913-1915 period the Reichsmark was in the range of four to the dollar, rising to some six to the dollar in 1917 and 1918. The situation began to deteriorate badly thereafter, 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.
The world is now approaching a Weimar-style hyper-inflationary collapse, for similar reasons. The actions of the Federal Reserve and the European Central Bank, as well as other central banks and the governments themselves, their determination to try to stimulate the dead corpse of this financial system back to life, their blind refusal to recognize the truth, is the making of a classical tragedy. Gripped by fear, these modern-day Hamlets are choosing to destroy all they hold dear, rather than break with their belief in failed monetary policies.
The nations of Europe, under the sovereignty-killing Maastricht treaty agreements, have abandoned their capabilities to react to this crisis, so it falls to the United States, under the powers and responsibilities vested in it by the Constitution, to lead the rescue of not only itself, but the world as a whole. Rather than continuing the foolish attempts to stimulate the corpse, the United States Government must use its sovereign powers to put its own financial system through bankruptcy proceedings, setting a precedent and providing the context in which other nations can act. The crucial first step is the passage of LaRouche's Homeowners and Bank Protection Act, which will erect the fire-walls necessary to protect the public and essential aspects of economic infrastructure to keep the economy functioning as the damage is sorted out.
THE REAL SERIOUS HYPERINFLATION BEGINS
http://larouchepac.com/news/2008/01/22/r...egins.html
After surveying the events since the beginning of this week, Lyndon LaRouche has now announced the beginning of a new educational campaign. The education will have a singular focus, hyperinflation.
100 Trillion German Mark:
The pinnacle of German hyperinflation.The historical reference for this topic occurred less than 5 generations ago, in pre-World War II Germany. Being surrounded by both the French and the British armies, the German government was forced, under the demands of the Versailles Treaty, to pay war reparations. These reparations were, of course, designed to be unpayable. Germany had no choice: "Pay, or we kill you!"
We, now, in the United States face almost the same situation. But this time, no external enemy force is demanding we try to settle the unpayable mass of financial paper that's currently in the process of hyperinflating the U.S. Dollar. We face an internal enemy, one which has been woven quite effectively into the moral fabric of our country over the past 40 years; the same moral decadence that enabled citizens of this country to tolerate financial pyramid schemes, the largest of which is coming down now: mortgages and its related financial paper.
There is another crucial historical difference between the two. In 1923, the German Reichmark was not the world's most powerful currency. Today, our U.S. Dollar is. We bear that responsibility to change our own personal, cultural habits, to use the power of the sovereignty of our Federal Constitution and put the entire U.S. Dollar system into bankruptcy reorganization. We are the only nation in the world with that unique ability.
Some might say, "Well, where's our Hitler?" Open your eyes buddy! Bloomberg and Arnie 'My father was a Nazi' Schwarzenegger, represent our Hitler potential. Mussolini-style Corporatism and Nazi-like austerity are knocking on the door.
So, reflecting on the outright assholes and idiots pushing "economic stimulus packages", think: "Gee, maybe a trip to the firing squad is not the kind of stimulation I'm looking for."
RUSSIANS CLINGING TO ILLUSIONS ABOUT RUSSIA AS A "HAVEN" FROM HYPERINFLATION
http://larouchepac.com/news/2008/01/23/r...latio.html
Senior Russian officials and politicians are clinging to their illusions that somehow, the international hyperinflationary crisis will only have a passing effect on Russia. Following Russian presidential candidate Dmitry Medvedyev's statement last week that 2008 might not be so bad, yesterday, Gennady Melikyan, Senior Deputy Chairman of the Russian Central Bank, told the press that while the crisis will go on in the West, Russia can survive without great problems, RosBusinessConsulting reported today. Melikyan, speaking in Tula, said that the "current negative situation on world markets has affected the Russian Federation. It is too early to relax, but there is certainty that we will be able to survive this quietly. There is no fatal danger of a crisis" in Russia, which is protected, he said, by its high level of foreign exchange reserves.
Russian Finance Minister Alexei Kudrin is also apparently suffering from the "money is economy" disease, since he said today at the World Economic Forum in the Swiss ski resort Davos, that Russia will offer a "haven of stability" amidst the financial turbulence. Kudrin was quoted by Novosti, saying: "In the past few years Russia has managed to achieve economic stability piling up substantial international reserves, which play the role of an airbag. I believe Russia will soon be the focus of attention as a haven of stability.... As a country with substantial reserves, Russia could help soothe the global crisis."
It would be beyond foolish for the Russian leadership to continue to deny the systemic scope of the hyperinflationary crisis. Hyperinflation is now the driving characteristic feature of the world economic system, and only a radical change in the supposed "rules of the game", could yield the potential solution.
Now is not the time for conventional, popularly accepted economic theory.