LaRouche Blasts Bernanke's Incompetence
Sept. 16, 2009 (EIRNS)Today economist and statesman Lyndon LaRouche charged that Fed Chairman Ben Bernanke's monetary policy is "turning a major crisis, into a hopeless crisis," as opposed to LaRouche's alternative, proposed in 2007. LaRouche stated that the difference between his approach, and that of Bernanke, is "the issue" for an urgent comprehension of economics and policy in this crisis.
A Washington researcher with expertise in the history of central bank policies had told EIR yesterday, that Bernanke intended to "keep Fed interest rates well below 1% for at least two years, and likely for three years." Bernanke thinks it's necessary, and inflation will have to be "contained" by other means than letting up on printing money, he said.
Say, from me, that Bernanke is, of course, utterly incompetent, and to a degree of gross stupidity," LaRouche said. "His process of printing money, is simply already hyperinflationary. What is collapsing is the sense of the financial world, which is collapsing on them. And the more they print money, the greater the rate of collapse in the financial sector. Because the physical production is collapsing. The financial sector's great problems are based on problems in the physical sector. What Bernanke and company have done, is what Greenspan did, really clearly, coming out of October 1987. What they do, is they say we pump monetary aggregate in, and it's the monetary aggregate that will cause a recovery. And therefore they say that in order to have a recovery, we have to put in a higher rate of monetary aggregation, in order to increase employment.
But it's the higher rate of monetary aggregation that is crushing employment!
So there's only one thing you can do in a case like this: you put the damned system through bankruptcy, and eliminate the monetary system. You get only the financial system and the physical economy as your only real elements which are determining the international process; then you can get a recovery, especially through a Glass-Steagall standard and reorganization. But you have to bankrupt this entire monetary sytem, which is directly opposite to what these creeps are doing.
You have to go back to when we proposed the HBPA [Homeowners and Bank Protection Act] in 2007. At that point, we could still have a simple reorganization in bankruptcy procedure, which would have stabilized the situation and would have allowed a recovery driven by a Federal credit system. What [they] did to prevent that from being installed, with this hyperinflationary system, a really runaway inflationary system. what they did, as typified by Dodd and Barney Frank, was the worst possible thing you could do. So you turn a major crisis into a hopeless crisis.
When people talk about economy, this is the issue. And if they are not talking about this issue, then they are just babbling away nonsense.
LaRouche caged the Greenspan/Bernanke hyperinflationary policy and its effects, within the context of his 1996 heuristic Triple Curve economic collapse function.