|This editorial appears in the August 18, 2006, issue of Executive Intelligence Review.
The Crash of 2006
As of Aug. 10, it had become obvious that the global break in the economic, financial, and political situation, which Lyndon LaRouche had forecast on April 20, 2006 to be coming by not much later than September 2006, was "on." It can be expected to proceed with mounting force in the immediate period ahead.
The impulse toward this global breakdown crisis is the crucial element that must be understood, in order to comprehend why the synarchist banking establishment is currently ramming through the insane Israeli escalation toward World War III.
In April, LaRouche pointed to the hyperinflationary explosion in commodity prices, as a crucial marker for the coming blowout. The bankers know the global bubble has to burst, LaRouche said, so they are rushing into primary raw materials.
In the wake of LaRouche's analysis, which was spread far and wide with the specific intent of spurring the remedial action required by the U.S. Congress, in particular, nothing has been done to change direction in any fundamental way. A liquidity crisis among the hedge funds resulted in the downturn of small commodity pricesbut this has since reversed. A wave of bankruptcies spread through the hedge-fund sector, creating quiet panic throughout the banking community, and emergency behind-the-scenes measures. Equally destabilizing was the spotlight being put on the unsustainability of the real estate bubble, particularly in the United States.
Reports from Europe on Aug. 10 reflected the fact that the collapse was taking on mounting force.
Roubini is writing "banker-speak," of course. What he calls a "recession," is actually a global breakdown crisis in both the economic and financial domains. The collapse of monetary instruments, such as the dollar and consumer credit, plus inflation, will be the least of the problems being faced, as the means of survival for billions of people simply disappear.
Which brings us back to LaRouche's point, both in making the April 20 forecast, and in noting to his associates on Aug. 10, that a breaking point had been reached. The fact is, that the devastating results of the incompetent and murderous economic policies which have dominated the U.S. and world economy for the last 40 years, do not have to be tolerated. Measures are available, within the principles established by Franklin Delano Roosevelt, and spelled out explicitly in the writings of Lyndon LaRouche, to re-establish an economic policy based on the general welfare. When put into effect, under emergency conditions, this policy can ensure that the banks functions, and livelihoods are sustained, while the productive capacities of the nation are preserved.
Will it be done? That depends upon the courage of those who understand that LaRouche is right, to come out and fight for that solution under his leadership. Time is very short indeed.