Appendix 1: Entering 2008 - Where do we stand?
Appendix 1: Entering 2008 - Where do we stand?
On July 25, 2007, in a Washington, D.C. webcast, the world renowned American economist and statesman, Lyndon LaRouche announced that the world-financial crash wasn't a future event, but was already unfolding. After warning his international audience that Vice President Dick Cheney was going ahead with plans for a military attack on Iran, unless stopped, LaRouche delivered the following assessment of the world-financial crisis behind the strategic crisis:
``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! The present financial system can not continue to exist under any circumstances, under any Presidency, under any leadership, or any leadership of nations. Only a fundamental and sudden change in the world monetary financial system will prevent a general, immediate chain-reaction type of collapse. At what speed we don't know, but it will go on, and it will be unstoppable! And the longer it goes on before coming to an end, the worse things will get. And there is no one in the present institutions of government who is competent to deal with this. The Congress, the Senate, the House of Representatives are not currently competent to deal with this. And if the Congress goes on recess, and leaves Cheney free, then you might be kissing the United States and much more good-bye by September.''
Before addressing the needed financial and monetary reorganization, LaRouche addressed a critical, related issue. LaRouche continued, ``There are two things that must be done. Let's start with the simplest thing, which is on the table now: Remember, impeachment is in the background, but impeachment is not the issue. The issue is getting Cheney out. You get Cheney out, now, and the situation can be made manageable. If you do not get Cheney out, you're kissing civilization good-bye. If it survives, it's not to your credit. And any Congressman who says he's not going to get Cheney out now, should leave the premises now, as a final act of decency. If Nancy Pelosi and other--if they can't get Cheney out now, if they're not determined to do it now, this month, before they leave Washington, they should quit now! Submit their resignations, and let somebody who's more competent come in, because it has to happen. Cheney has to go!''
As it was a part of his warning was evidently heard. While the impeachment didn't happen, the strategic crisis was narrowly averted by the actions of some courageous patriots in the institutions, intervening in the crisis as it was unfolding,. The financial crisis, however, continued unabated. During his webcast, LaRouche had also issued a public call for an immediate freeze on home foreclosures, across the board. Within days he was proven absolutely correct. On July 28, Countrywide Financial Corp., America's biggest mortgage lender, announced a 33 percent drop in profits. Two days later, American Home Mortgage, another major mortgage lender, specializing in ``Alt-A'' mortgages, collapsed. By July 31, 2007, the sub-prime mortgage crash spread internationally, with the announcement that the German Industrial Bank, IKB, had barely averted bankruptcy, through an $11 billion emergency loan from a consortium of German banks. IKB had heavily invested in U.S. mortgage-backed securities.
Lyndon LaRouche was 100 percent right, in July 2007, when he called the greatest financial crash in modern history. He was also 100 percent right that the leadership of the U.S. Congress, particularly Speaker of the House Nancy Pelosi, had failed the American people, by refusing to impeach Vice President Cheney, and by systematically failing to act responsibly, by passing his proposed Homeowners and Bank Protection Act. Pelosi's folly has been compounded by insane, desperate actions by Treasury Secretary Hank Paulson, and Federal Reserve Chairman Ben Bernanke, who have responded to the bank collapse by resorting to hyperinflationary efforts to flood the banking system with a new ``wall of money.'' This approach, endorsed by the European Central Bank, the Bank of England and other major central banks, is the same approach taken in Germany in the Summer and Autumn of 1923, leading to the greatest hyperinflationary explosion in modern history, up to the present moment. LaRouche has warned that these kinds of measures, under the present circumstances, will only accelerate and deepen the already onrushing crash. And that has come true.
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