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The Era of Sovereign Defaults Is Here

Dec. 1, 2009 (EIRNS)—"These are the days when the world system of the International Monetary Fund is slipping into a chain-reaction pattern of sovereign fiscal defaults," Lyndon LaRouche stated Nov. 30. The Queen's Nov. 27 speech to the Commonwealth summit, coinciding with the announcement of Dubai's default, was the umbrella under which the wave of sovereign defaults was announced.

The system is gone.

Nothing can be understood without consideration of the Queen's speech, LaRouche continued, which was probably the most significant event over the recent period. With her declaration that the Commonwealth—in fact, the physical extension of the British Empire's monetarist global realm—must expand its international role, she declared the Empire's intention for global genocide, and the end of nation-states, which are now to be liquidated in a wave of sovereign defaults.

The number of countries which are currently in jeopardy, due to their own bankruptcy and the conditions created by the Queen's policy dominating the bankrupt system, is extensive. On Nov. 30 alone, the following nations were mentioned: Ireland, Greece, Hungary, the Baltic States, Ukraine, Pakistan, Romania, Bulgaria, Spain—and the United Kingdom and the United States.

"The challenge is thus posed, immediately," LaRouche said, "on the eve of my Dec. 3 webcast, as to whether nations will act to survive." You have no choice, but to go with what I have to say on Thursday; you may not like it, but you have no other chance."

The only way to deal with this, is reorganization-in-bankruptcy, said LaRouche:

If the United States would declare its intention to join with China and Russia, in keeping with and building around their mid-October agreements, to establish a Bretton Woods-modelled credit-system, in place of the present world monetarist system," he continued, "the world could make it. But the U.S. would have to agree to a fundamental change, and say to China and Russia that we, as a leading group among nations, should put the monetary system under bankruptcy reorganization, and establish a new fixed-exchange-rate credit system, which, while beginning with a few powerful nations—the U.S., China, Russia, and India—could expand to form the basis of a new international credit system.

By acting in this way, the United States and other nations can get off the Titanic, and onto the lifeboat which I have devised. The lifeboat won't take them to Paradise, but it will provide the means for survival, rather than the road to imperial Hell.

The immediate cancellation of the neo-malthusian Copenhagen conference, in rejection of the pro-genocidal lies of Prince Philip's World Wildlife Fund atrocity, would be the initial step toward global sanity.