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Brits Know Another Blowout Is Imminent

June 28, 2010 (EIRNS)—The June 27 column by the Daily Telegraph's money reporter, Ambrose Evans-Pritchard, is another screeching demand for "monster" hyperinflation in a doomed attempt to save the monetarist system. That's not new. In the course of his argument, however, Evans-Pritchard points to some indicative aspects of the collapse process.

It's a page from Hitler's book, LaRouche commented.

First, there are markers for the accelerating collapse, physically and financially: world trade down 1.7% in May; the Baltic Dry Index, measuring freight rates on bulk goods, down 40% in a month (it's volatile, but...); a crash of new U.S. home sales to record lows in May; M3 money supply has contracted by 5.5% over the last year, and the pace is accelerating (that's the second curve in LaRouche's triple curve); and more.

Second, there's the warning being put out by Andrew Roberts, credit chief at Royal Bank of Scotland (no insignificant entity, although taken over in bankruptcy by the British government), to his clients. Roberts is worried about Bernanke turning on the printing presses to a "monster" level, as implied in the $5 trillion balance sheet upper limit at the Federal Reserve. And why?

"We cannot stress enough how strongly we believe that a cliff-edge may be around the corner, for the global banking system (particularly in Europe) and for the global economy. Think the unthinkable."

Then comes Evans-Pritchard's solution. After noting the inefficacy of the massive bailouts in preventing disasters globally, including the fact that sovereign debt crises are nearing the "boiling point" in half the world economy (according to the Bank for International Settlements, BIS), he puts it plainly:

"The only plausible escape route for the West is a decade of fiscal austerity offset by helicopter drops of printed money, for as long as it takes."

The only thing he left out is that, after Weimar hyperinflation, comes Hitler.