The Problem Ain't Dubai: It's London!
by John Hoefle
Nov. 27—Death never takes a holiday, and neither does the global breakdown. While the attention of America was distracted by the Thanksgiving holiday, the British Empire was on the move, making decisions which include a planned early dumping of President Barack Obama.
The "Dubai crisis," as it is being mis-reported, is actually the breakdown of the London-centered global monetary system. Far from being a mere backwater, Dubai occupies a key place in the dope-running, dirty money, criminal organization which is the empire. To view this merely as a "Dubai crisis," is to miss the point entirely about the nature of the period.
Lyndon LaRouche observed Nov. 24:
Since January of this year, but most clearly since the beginning of April, the United States and world civilization, but particularly the United States, is in a process of self-destruction.
What you're having now—it should be obvious to you all—is a general breakdown of civilization. This is not a financial crisis, though there is one there. It's not an economic crisis—there's a real big one there. But it's a breakdown of civilization... the entire society, especially immediately in the United States, is disintegrating.
The next day, while the American press was busy exhorting Americans to gear up for a Black Friday shopping frenzy, the next phase of the collapse was beginning, in London, and Dubai.
The public portion of the crisis began when Dubai World, a corporate front for the royal family of the tiny nation, announced that it was requesting a six-month moratorium on its debt payments. The move sent European stock markets plunging on Thanksgiving Day, followed by Asian and U.S. markets the next day, as fears of a new round of losses spread around the world.
Bank stocks were hit the hardest. Dubai World has some $60 billion of debts, about half of which is reportedly owed to European banks. The company went deep into debt to fund one of the craziest fantasies we've seen in a while, the turning of Dubai into a tourist destination and pleasure center. It created a series of opulent man-made residential islands, shopping malls, luxury hotels, and high-rise towers, filled with nearly every amenity possible, except maybe good taste. The game worked for a while, but then the financial system blew, and real estate values fell by 50%.
The bank debt and the real estate values are trivial, however, compared to the subterranean money flows which form the real economy of Dubai. The tiny emirate is the central black market for the empire's black-market system, the financial capital of the world's dope and hot money trade. Dubai today plays a role similar to that of Hong Kong in the earlier days of the British Empire, its high-rises home to some of Afghanistan's most powerful drug lords, among other narcotrafficking kingpins. This is the real reason for Dubai's emergence as a financial center.
Dubai is run top-down by the British, built largely with British money, and by British-linked construction firms. Most government agencies have a member of the Dubai royal family as the titular head, with a Brit second in command and actually running the operation. It should come as no surprise that Sheikh Mohammed, the ruler of Dubai, went to London to visit Queen Elizabeth, Prime Minister Gordon Brown, and others, in the days immediately preceding the Dubai World announcement. As the Sheikh himself said, the whole thing had been "carefully planned in advance."
The full extent of what the British have planned remains to be seen, but it is clear that they are not at all happy with the state of their empire, and when they are angry, they tend to lash out. They also tend to make mistakes, which works to our advantage.
Whatever they do, the disintegration will continue. As LaRouche has observed, the system is collapsing faster than the imperialists can put their fascist measures into place, forcing them to constantly react to forces beyond their control. The only way to stop the slide into a new Dark Age, is the full implementation of the LaRouche Plan.
The crash is on. Nothing has been solved, not by all the criminal bailout schemes, not by the so-called stimulus plans, not by the "recovery" lies of the clueless cheerleaders. Through it all, the financial losses have grown, and the physical economy has collapsed. Look at the number of people who have lost their jobs, the number of families who have lost their homes, the number of state and local governments which are now hopelessly bankrupt and cutting services beyond the marrow. This is reality, and it is getting worse.
Rather than moving to help their people, governments are turning openly to fascism. Trillions of dollars for the bankers, but nothing for the people. We get medical cuts for the elderly, cutbacks in cancer screening, and other such measures. These fascist policies continue to be pushed down our throats. The government knows the people are opposed to these measures, but it imposes them anyway.
All of these policies originated in Britain, where a callous disregard for the welfare of the people by a self-serving and fascist elite is the hallmark of that inferior society. Welcome to more British Empire.
The empire, and its colonial flunkies in the United States—like President Obama—know the current system is finished, and they are working feverishly to keep us preoccupied while they dismantle what few protections we have left. Much of this is being done under the false flag of reform—financial reform, health-care reform, tax reform, energy-policy reform, and others—austerity, and further concentration of power in oligarchic hands, sold by the behaviorist psychos as progress. The "new and improved" version of the same old fascism.
Look at the banking reforms that are being pushed by the Brits, their Wall Street agents, and their pets in Congress, like nasty Nancy Pelosi and "Bailout Barney" Frank. Notable are the moves to make it easier to break up bankrupt financial institutions, and the proposed tax on financial transactions. On the surface these may seem like reasonable policies, but they are not, at least in the context of the existing system. Absent LaRouche's bankruptcy reorganization, the anti-"too big to fail" moves are really just ways to make it easier for the imperial banks to gobble up their competitors, and the transaction tax a way of charging the victims for being eaten.
No one should ever forget that it was the British Empire that organized and financed the wave of fascism which struck the world in the 1920s and 1930s, the British Empire which gave us Mussolini and Hitler. The empire is still fascist, but since Hitler made it impossible to sell fascism in its own name, it has now been repackaged, as globalization and environmentalism. "It's not austerity, it's saving the planet! You still die, but now it's for a 'good cause.' Don't you feel better already?"
The LaRouche Plan
The only way to stop this descent into Hell is to break the grip of the British Empire over the world, and that means busting up its monetary system. We must take away its power to control money, and give that power to sovereign governments. If that sounds radical to you, just remember it's what the Constitution says on that, and that our divergence from the Constitution opened the door to the current disaster. If we don't break the power of the empire, nothing else we do will make a damn bit of difference. Nothing!
Rather than propping up the casino, we shut it down, writing off all derivatives, putting the mountains of speculative debt in the freezer, and reorganizing the banks under strict regulations. No more derivatives, no more casino. Finance becomes what it should be, the servant of real economic activity. Real bankers will love it, and the gamblers—well, who really cares!
We do this in conjunction with Russia, China, and India—and any other nation which wants to join—to form a bloc powerful enough to force the empire into submission. Sorry, Queenie, no more empire.
That done, we can turn our attention to improving the conditions of life on the planet. That means science and technology, infrastructure and production, education and creativity. Rather than going to Hell, we can go to Mars!