`We Must Eliminate Hedge Funds'
In an article published in the Feb. 17, 2006 issue of EIR, Lyndon LaRouche bluntly stated that, "In this moment of onrushing threat of early general financial collapse ... the prompt first actions to be taken by governments, must be to eliminate the existence of so-called 'hedge funds' and related expressions of so-called 'financial derivatives' from the national and international economy." Several days later, on Feb. 23, LaRouche addressed an international webcast on behalf of the Lyndon LaRouche Political Action Committee, where he identified today's hedge funds as the instrument of fascist bankers, like Felix Rohatyn, to destroy the nation-state. On June 23, 2006, the Federal Court of Appeals in Washington, D.C. overturned regulations that had been imposed on the hedge funds by the Security and Exchange Commission (SEC), which had required them for the first time to identify their principal owners, and directors. After the Court of Appeals ruling, some headlines read, "Hedge Funds Free To Run Wild."
LaRouche's call to make hedge funds illegal is now more urgent than ever. His comments on hedge funds, from the Feb. 23, 2006 webcast, are excerpted below:
Now the intention, therefore, is to destroy the nation-state, to concentrate wealth, as it is being concentrated now, by all this rape of industry. Industry is being raped internationally, by hedge funds, that are taking over and looting corporations, so the corporations either don't exist, or they become simply creatures of the hedge-fund interests. The hedge funds are the major banks! The major banks are the hedge funds. The hedge funds are their creation. They are running around the world pirating, stealing everything like Biche and Mouche from the House of Bardi in the early part of the 14th Century! Their idea is to set up a permanent system, like the Venetian system, with Norman chivalry, during the medieval period, in which the power of the state is virtually non-existent, except by consent of the bankers. And the bankers run the world. And, the bankers have an enforcing arm, such as the Norman chivalry, to do the killing.
That is Cheney's policy. That's the Bush Administration policy. That's the policy of George Shultz. That is Felix Rohatyn's policy! What does he say? He says, "private interest, private interest, private interest!"
You want private money?
Yeah, I got a hedge fund, that is ready to come in and take over your firm, in a take-over operation, based on what Scalia calls shareholder value, move in next to a corporation with a big show of money; say, "Now we represent the stockholders." Take the firm, loot the firm ... by paying big dividends, or big portfolios to people; loot the place; run it down into bankruptcy, and throw the carcass away, and move on with the gathered wealth, and move on to the next place!
That's what's happening to the automobile industry right now! That's what's happening to the industry of Europe right now. This is fascism! Felix Rohatyn is a fascist! And the key thing, to learn the lesson from the fact that some people don't realize he's a fascist: You understand now how Hitler came to power in Germany! Because, nobody thought Hitler was a Nazi.