08-01-2007, 07:11 PM
THE FINANCIAL SYSTEM HAS ALREADY COLLAPSED
http://www.larouchepac.com/news/2007/07/...apsed.html
Briefed throughout the day on Monday about various manifestations of the onrushing financial crash of the entire global system, Lyndon LaRouche commented: "I'm not impressed with what's happening today. Why? Because it already happened. The system has already come down.'' The outstanding debt on the books of the banks can never be paid. Silly panicked fools are rushing to collect, but they are finding out that the money isn't there. And yet, there are still schmucks out there who protest, "But, I don't see it. Prove to me that the system has already collapsed.''
LaRouche elaborated: You have to look at the "bookends of the crisis," the two extremities. On the one side you have the yen carry trade and on the other side non-payment. The money is not there now to cover the takeovers because the money was not there from the beginning to fund the takeovers. You had a flood of money pumped into the system through the mechanism of the yen carry trade and similar things. Nearly zero interest money went out from Japan into Australia and New Zealand, and on from there to other parts of the world, where it fueled a speculative explosion of hedge funds, private equity funds, etc. The whole system was doomed to blow out, and the timing was largely subjective. When would time run out on the ability to collect on the unsustainable debt? As long as no one tries to collect on the debt, everyone can pretend not to be bankrupt.
That all ended in the recent period. The yen carry trade is blown out, and all that is happening now, is a desperate effort to minimize what has already occurred. The defeat of the Abe LDP government in Sunday's upper house vote in Japan is but one more signal that the whole yen carry trade debacle is over. The money ain't there no more, and now Abe is finished.
Today, the word in Germany was that the collapse of IKB was just a "small bank gone under,'' with no systemic implications. Oh yeah? How long is that fantasy going to last? The explosion already occurred, and the rubble is already falling down from the sky. Just because you haven't been hit on the head yet doesn't mean it isn't so. Stand in the same place for much longer and you will be devastated by the debris. The conditions have existed for some time in the international process, and it has now reached the point of ripeness. Now the storm has hit, and wishful denial of reality is not a very good commodity at this point in time. The present system is dead and the only question is when the undertaker will arrive.
The system is crashing, and Congress is caught up in busy work, of no relevance to reality. That has to change right now. They cannot leave town for the scheduled August recess, or else Cheney and his British masters will unleash a war that will wipe out 40-80 percent of mankind before the dust settles. The rate of collapse of the entire global financial system is going to accelerate now. It is full speed ahead.
In this context, Lyndon LaRouche announced that he will be devoting much of his time in the immediate period head to a draft election platform for the Democratic Party to address what has to be done. This is the context for the immediate removal of Dick Cheney from office. With the system gone, we need a functioning Executive branch, and that means Cheney has to be removed from the premises.
http://www.larouchepac.com/news/2007/07/...apsed.html
Briefed throughout the day on Monday about various manifestations of the onrushing financial crash of the entire global system, Lyndon LaRouche commented: "I'm not impressed with what's happening today. Why? Because it already happened. The system has already come down.'' The outstanding debt on the books of the banks can never be paid. Silly panicked fools are rushing to collect, but they are finding out that the money isn't there. And yet, there are still schmucks out there who protest, "But, I don't see it. Prove to me that the system has already collapsed.''
LaRouche elaborated: You have to look at the "bookends of the crisis," the two extremities. On the one side you have the yen carry trade and on the other side non-payment. The money is not there now to cover the takeovers because the money was not there from the beginning to fund the takeovers. You had a flood of money pumped into the system through the mechanism of the yen carry trade and similar things. Nearly zero interest money went out from Japan into Australia and New Zealand, and on from there to other parts of the world, where it fueled a speculative explosion of hedge funds, private equity funds, etc. The whole system was doomed to blow out, and the timing was largely subjective. When would time run out on the ability to collect on the unsustainable debt? As long as no one tries to collect on the debt, everyone can pretend not to be bankrupt.
That all ended in the recent period. The yen carry trade is blown out, and all that is happening now, is a desperate effort to minimize what has already occurred. The defeat of the Abe LDP government in Sunday's upper house vote in Japan is but one more signal that the whole yen carry trade debacle is over. The money ain't there no more, and now Abe is finished.
Today, the word in Germany was that the collapse of IKB was just a "small bank gone under,'' with no systemic implications. Oh yeah? How long is that fantasy going to last? The explosion already occurred, and the rubble is already falling down from the sky. Just because you haven't been hit on the head yet doesn't mean it isn't so. Stand in the same place for much longer and you will be devastated by the debris. The conditions have existed for some time in the international process, and it has now reached the point of ripeness. Now the storm has hit, and wishful denial of reality is not a very good commodity at this point in time. The present system is dead and the only question is when the undertaker will arrive.
The system is crashing, and Congress is caught up in busy work, of no relevance to reality. That has to change right now. They cannot leave town for the scheduled August recess, or else Cheney and his British masters will unleash a war that will wipe out 40-80 percent of mankind before the dust settles. The rate of collapse of the entire global financial system is going to accelerate now. It is full speed ahead.
In this context, Lyndon LaRouche announced that he will be devoting much of his time in the immediate period head to a draft election platform for the Democratic Party to address what has to be done. This is the context for the immediate removal of Dick Cheney from office. With the system gone, we need a functioning Executive branch, and that means Cheney has to be removed from the premises.