EIR LEAD EDITORIAL FOR WEDNESDAY JUNE 1, 2022
Global NATO ‘De-Powers’ Trans-Atlantic Economy; Schiller Institute Mobilizes for World Bankruptcy Reorganization
May 31, 2022 (EIRNS)—Today in both Brussels and Washington, the leading nations of NATO, alongside Global Britain, issued more insane commitments which will “de-power” their economies in the name of fighting Russia, all the while they are arming and destroying Ukraine, goading Taiwan against China, and threatening world war.
The EU last evening, at its two-day heads of state and government meeting, passed its sixth round of sanctions against Russia, whose main plank features a partial ban on oil imports from Russia, banning oil coming by Russian ship; and setting a six-month deadline on oil by pipeline, except for a waiver on that for Hungary, which stood adamantly against it and will continue to receive Russian oil via the Friendship pipeline. Additionally, three Russian banks, including the largest lender, Sberbank, were ousted from SWIFT, and venal personal sanctions were issued as well.
Europe is already electricity and fuel short, because of years of downgrading its baseline energy production platform, especially in the name of going green against fossil fuels, so this latest economic attack aimed against Russia, actually hits the homeland population of the European Union the hardest.
Nevertheless, EU Commission President Ursula von der Leyen today gave an exultant speech at the EU summit’s closing, proclaiming that the EU is now committed to “Re-Power” Europe. She said that there are to be “massive investments in renewable power,” the very downshift to unreliable, insufficient energy that is part of the hyperinflationary breakdown now underway in the economy. The inflation rate for May was 8.1% in Europe year-on-year, with many sectors and regions experiencing 30% inflation in certain costs, and absolute shortages of necessities.
In Washington, President Joe Biden proclaimed new executive actions today on U.S. inflation, which for April showed overall prices 8.5% above a year ago. He made a big deal of meeting at the White House with Federal Reserve System Chairman Jerome Powell, for the first time in six months. Biden had a guest column in the May 30 Wall Street Journal (“Joe Biden: My Plan for Fighting Inflation”) in which he presented a twisted, attempted positive spin on the hyperinflation—saying it was part of the result of the roar of the post-pandemic economy, and now, the inflation that went with it is just a transition to a stable economy that the Biden Administration promises to bring about. “I won’t meddle with the Fed, but I will tackle high prices while guiding the economic transition to stable and steady growth.”
Biden called for three points: 1) Federal Reserve intervention; 2) government attention to a miscellaneous set of problems, e.g., overpriced prescription drugs, overpriced ocean shipping, overpriced child and elder care, etc.; and 3) government tax reform to bring down the federal debt.
All of this evil incompetence is par for the course, but can no longer be tolerated, as many more nations and people are coming to express. Take the U.S. Indo-Pacific Economic Framework, announced in Japan personally by President Biden earlier this month. Senior statesman Mahathir Mohamad, former Prime Minister of Malaysia for 24 years (from 1981-2003; and from 2018 to 2020), denounced the IPEF this week, as having no economics to it at all; rather, it is a political ploy aimed against China, and a dangerous one.
The focus on what to do about the systemic crisis of the armed and dying world casino/dollar system, is provided today by the text of the newly released invitation to the Schiller Institute’s international conference on June 18-19. It is titled, “There Can Be No Peace Without the Bankruptcy Reorganization of the Dying Trans-Atlantic Financial System.”
The Schiller Institute release points out, “On the matter of physical economic collapse, the Federal Reserve Bank has led a worldwide frenzy of Quantitative Easing which has unleashed galloping hyperinflation, now spreading from the $1.9 quadrillion in unpayable derivatives and other financial assets into the producer and consumer good sectors of the economy. As a result, there are drastic and growing shortages in food, energy, and other goods essential for human survival. Up to 2 billion out of the nearly 8 billion people on this planet are facing food insecurity this year which, if not urgently reversed, will rapidly become hunger and then starvation for up to one-quarter of humanity.”
What to do? It is “time to take recourse to the policy solutions provided by Lyndon LaRouche, to bring about the successful bankruptcy reorganization of that dying system” City of London and Wall Street’s free-trade and floating exchange rate system, “and replace it with a new international security and development architecture built on the same philosophical cornerstone of statecraft which gave rise to the Peace of Westphalia in 1648.”
The full text of the Schiller Institute invitation is posted and also below. Spread the word and spread the initiatives.