EIR LEAD EDITORIAL FOR THURSDAY SEPTEMBER 1, 2022
Ever Wonder What a Chain-Reaction Economic Breakdown Looks Like?
Aug. 31, 2022 (EIRNS)—In a Jan. 23, 2008 article issued within 48 hours of the Black Monday blowout of international stock markets, and London and Washington’s panicked decision to bail out the global speculative bubble with funny money, Lyndon LaRouche sternly warned: “Failure to take the kinds of U.S. emergency reforms which I have prescribed, would now ensure a chain-reaction form of global hyper-inflationary collapse, threatening to carry the entirety of our planet into a prolonged new dark age.”
Lyndon LaRouche’s advice was not taken. Instead, quantitative easing was unleashed, and some $30 trillion in worthless paper has been issued since then to try to bail out the bubble, which grew from about $1.6 quadrillion in 2008 to nearly $2 quadrillion today. And now we are in the throes of the chain-reaction blowout that LaRouche warned about, combining hyper-inflation with physical-economic collapse that will leave nations and their peoples as wreckage in its wake.
There is, it should be stated, growing recognition that a breakdown crisis is in fact underway—but not of what to do about it. Just sample some prominent comments from the last 24 hours:
“(An) economic catastrophe (is) just a month away”—U.K. Liberal Democrats’ Cabinet Office spokesperson Christine Jardine.
Western Europe is headed for an “energy collapse”—Hungary’s Foreign Minister Peter Szijjarto.
“The next 5 to 10 winters will be terrible if nothing is done”—Belgian Energy Minister Tinne Van der Straeten.
Without fossil fuels, “civilization will crumble”—Elon Musk.
U.K. inflation will soar to over 22% next year—Goldman Sachs.
Europe, in fact, is looking at a New Dark Age on its doorstep, and the United States is not far behind. It is a New Dark Age triggered by self-imposed energy shortages resulting from the anti-Russia sanctions policy, but caused by the financial Establishment’s abiding commitment to a Malthusian policy of global deindustrialization and mass depopulation.
Small wonder, then, that China, Russia, and most of the developing sector are refusing to go down with the sinking ship, including its policy of geopolitical wars and bloody silencing of opposition voices.
There is little time left to heed Lyndon LaRouche’s warnings and policy advice—but it is sufficient if we get at it. What follows is LaRouche’s full introduction to the above-mentioned 2008 article, published in the February 1, 2008 issue of Executive Intelligence Review, “Hyperinflation Is Here! This Economic Breakdown”
“The insane U.S. decision, over the past week, to launch a ‘stimulus’ package for the U.S.A. economy, has committed the U.S.A. to its present entry into a new trajectory: that of a hyper-inflationary economic breakdown-crisis. This is a crisis whose effects, unless reversed very soon by the measures I have recently specified, would certainly radiate world-wide, almost certainly bringing the entire planet, soon, into a ‘new dark age’ comparable to that triggered by the Fourteenth-Century, medieval Venetian system’s Lombard banking firms, such as the notorious House of Bardi. I had expressed the fear, on various public occasions since 1968 developments, that the changes in U.S. and other nations’ economic, monetary, and financial policies launched, successively by the combination of the Nixon Administration’s cancellation of the Bretton Woods fixed-exchange-rate monetary system, and the wrecking of the U.S. physical economy by the Carter Administration’s implementation of the policies of the Rockefeller-Brzezinski Trilateral Commission, must, if not reversed, lead, ultimately, into not only the establishment of fascistic policies inside the U.S.A., as exactly this outcome has been in progress around Shultz, Rohatyn, Bloomberg, and Schwarzenegger, but, also, into a general breakdown-crisis of not only the U.S. economy, but the world’s economy as a whole.
“During the past two weeks, the U.S.A. and the United Kingdom both entered such a general, hyper-inflationary form of general economic breakdown crisis, into a period of an hyperinflationary form of monetary stimulus comparable to that of 1923 Weimar Germany. Unless this presently ongoing trend in policy-shaping in process is stopped, there is no part of the world which would not be soon swept into world-wide effects of a form of global breakdown-crisis comparable to that of Europe’s Fourteenth Century.
“This threat could be stopped, even now; but failure to take the kinds of U.S. emergency reforms which I have prescribed, would now ensure a chain-reaction form of global hyper-inflationary collapse, threatening to carry the entirety of our planet into a prolonged new dark age. Such, for example, are the only really important issues to be considered by the current U.S. Presidential pre-election campaign. All other concerns are almost irrelevant.”