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The FED needs to go to
"It is time to break the silence on derivatives," Lyndon LaRouche said yesterday, after observing the carnage in the financial system and the pathetic response from the so-called regulators. "The true, hyperinflationary factor in the situation is the unregulated, insanely leveraged derivatives trade. This is what is killing us. This is the great crime of Alan Greenspan."
LaRouche described the derivatives market as a "hyperinflationary bomb, crushing the international financial system," warning that "Until you just shut down the whole derivatives trade--wipe these gambling obligations off the books of the financial system--you are just kidding yourself."
"Unless and until you deal with this derivatives bubble, which cannot be bailed out, you are just kidding yourself," he continued. "It is time for Hank Paulson to swallow the only real medicine: bankruptcy reorganization of the entire, dollar-based financial system. And the first step in any such bankruptcy reorganization would be the cancellation of these quadrillions of dollars in pure gambling obligations. Without such action, this planet is doomed to a horrible dark age, just like the dark age of the fourteenth century, that followed the collapse of the Lombard banking system."
Blood In The Streets
You don't have to be a financial insider to see that the entire global financial system is collapsing, since that collapse is now front-page news every day. The Bush Administration, its co-conspirators in Congress, and the Federal Reserve have passed the largest financial bailout scheme in history, and the Fed and the Treasury are cooking up new bailout facilities and increasing the money available in existing facilities on practically a daily basis. The stock markets are plunging, with the Dow Jones Industrial Index down 40 percent in a year, and dropping like a rock. The banks, particularly in the U.S. and Europe, are vaporizing faster than most people would have thought possible a year ago, with governments in most major European countries belatedly taking steps to prop up the banks and stop runs by protecting deposits. Yet despite it all, the crisis deepens by the day.
The carnage is becoming increasingly more visible in the
