June 24, 2007 (LPAC)--It is becoming ever more obvious that the international bankers are attempting to bleed down the bubble in the hopes of preventing a catastrophic blowout of the system. The Plunge Protection Team in the U.S., lead by Treasury Secretary Henry Paulson and his band of bankers have had some measure of success in relieving some of the pressure on the dollar and in a more limited way the subprime real estate market, but their woeful ignorance of physical economy--that is, how an economy actually functions--combined with their belief that economies actually run on money and that as long as you control the money you can keep the economy from collapsing, will inevitably cause them to fail.

The use of derivatives and related financial insanities has become so widespread and so complicated, that the attempt to deal with a crisis in one area, can easily trigger a crisis in several other areas. The financial system has become so divorced from reality that the players have confused their game of Monopoly with the real world. As asset values decline and more and more needs to be written off, the maze of interconnections which proved so (virtually) profitable on the way up, will unravel in quite unexpected ways on the way down.

Every time they move to solve one problem they create other problems, including the surfacing of problems they had previously carefully hidden, LaRouche observed. He compared it to blowing smoke down a gopher hole to rid yourself of a pest, only to find smoke and gophers popping up in places you never suspected.