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LaRouche: `Foreclosure Swindle Demands Implementation of the Measures
I Proposed in July-August 2007'

Oct. 11, 2010 (EIRNS)—Speaking to an event yesterday sponsored by the Kesha Rogers for Congress campaign, leading physical economist Lyndon LaRouche asserted that only a freeze on foreclosures, such as the one he proposed in the summer of 2007, could save the United states from plunging into an irretrievable breakdown crisis in the weeks immediately ahead.

It was on July 25, 2007, in an international webcast, when LaRouche delivered the unequivocal message that the current financial system was finished, and could not be revived in its current form. It was within days of that webcast, that the global financial bubble began to unravel, with consequences which have led to successive phases of disintegration of the physical, and financial, economy up to the present day.

At the same time, LaRouche outlined the principles for resolving the crisis, and in August, issued a piece of legislation called the Homeowners and Bank Protection Act of 2007 (HBPA), which called for freezing foreclosures and the entire mortgage area, for a period of time during which a competent financial bankruptcy reorganization could be carried out.

As LaRouche put it yesterday:

"So, the point was, my view is, you had to get through legislation which would suspend all foreclosures, for the time being, until we could reorganize the banking system. If that had been done, we would be probably out of the woods now. But, as a result of the continuation of the operations against the Homeowners and Bank Protection Act then, and also to Glass-Steagall, which is a complement to the Homeowners and Bank Protection Act, in terms of principle, we are now at the verge of a general total breakdown of the entire U.S. financial system.

"Only a freeze, which would be retrospectively an echo of what I proposed back in 2007, in July-August of 2007, only those measures now, in the suitable form for now, could save the United States from plunging, in the weeks immediately ahead, into a total breakdown crisis, of not only the U.S. financial system, and banking system, but the world banking system.

"So, that's where we stand now. So, the way people act in the coming Nov. 2 election, may settle the fate of, not only the United States, but of the nations of the world.

"We are presently in a situation, globally, which is comparable, overall, to what happened within Germany in 1923. At that time, the German collapse was based on a foreclosure proceeding, a hyperinflationary type of foreclosure proceeding, like ours now, which was confined to the German borders—because this was imposed upon Germany from the outside, by the group led by London, and so therefore, it did not really directly affect the other nations of Europe in any significant degree, comparable to that that happened in Germany in 1923.

"Now what we have, is we have something like what happened in Germany in 1923, in the great crisis then of the deutschemark, we've having it now on the global scale. It is centered at the moment, in the trans-Atlantic sector of the world economy. This is not a national problem, it's not a European problem, it's not an American problem, it's not a South American problem—it's a world problem. But it's centered at the moment in the financial systems, the integrated sort of financial systems, of the transatlantic region, especially in the North American side, except Brazil is also a key part of the explosion coming on now.

"The entire banking system, which is dominated currently by the Inter-Alpha Group, which was founded by Rothschild in 1971, that banking group controls about 70 percent of the world's financial interests now, in terms of banking and related things. That is ready to blow. It's ready to blow out. It's hyperinflated. It, rather than the United States, is the actual driver, internationally, of the present crisis. But the United States, as a victim of the British initiative centered around this Inter-Alpha group, is a key part, a major part, of the blowout, obviously.

"So the only thing we can do is to take the kind of measures, which, in philosophical terms, are what I proposed back in 2007. What's notable is that every leading action, on financial reforms of any kind, since that time, since the beginning of September of 2007, for example, has been stupid, and worse than stupid. Every action, leading action, out of the Congress, in terms of dealing with this crisis, has been worse than stupid. These actions, this leadership, by two Presidents—under George W. Bush, Jr. and under Barack Obama—have been the worst governments in the history of the United States, in terms of their actions on this kind of issue. And unless we change that direction, back in the direction of the thinking which I posed in July of 2007, in that webcast, there's no chance that the United States is going to make it throughout this process."

For more information on LaRouche's proposals, on the HBPA, Glass-Steagall, and other measures, see www.larouchepac.com.