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October 14, 2009 (LPAC)—A well-placed banking source reported to EIR that there is, once again, an intense debate going on within the regional districts of the Federal Reserve Bank over the decision by Chairman Bernanke to take deliberate measures to sink the dollar. The source said that there are some within the Fed who are unhappy with this policy, as there were assurances given to the Chinese government, among others, that the U.S. would support the dollar. Richard Fisher, the President of the Dallas Federal Reserve, reported back from a May 2009 visit to China that he was repeatedly grilled by Chinese officials over whether the U.S. would support the dollar. Both Fisher, and U.S. Treasury Secretary Geithner, told the Chinese that the U.S. is committed to a strong dollar. Recent actions by the Fed have shown there is no such commitment.

In response to this report, Lyndon LaRouche said, "What Bernanke is doing is the worst possible thing you can do. Bernanke is making a liar out of the U.S. government. Government officials promised to defend the dollar, but Bernanke's policy is to sink it. It's time for Bernanke to go.

"Bernanke must be dumped," LaRouche emphasized. "The reason is that the United States Presidency made a promise to China, but Ben Bernanke is now overthrowing that agreement. This is intolerable! If we have to choose between Bernanke, who is useless anyway, and one of our key partners, China, which is very important to us, we'll choose China over Bernanke every time!"

LaRouche elaborated further, adding that "the U.S. can't afford his [Bernanke's] mistakes, which appear to be chronic, rather than episodic. Under the present circumstances of a global financial meltdown, such actions threaten to plunge humanity into a New Dark Age.

"The only way to defend the dollar," he continued, "is to implement the LaRouche Plan in the United States at once. The problem is that we have shut down physical production, substituting financial speculation for physical production, in support of policies of so-called globalization. This has been a disaster. We must act at once to restore physical production. We must defend the population, with an emphasis on creating blue collar jobs, with major, necessary infrastructure programs, immediately.

"We don't mean cutting everybody off but blue-collar jobs," he cautioned. "We'll do what we have to do for the general welfare, but our emphasis must be in increasing production through blue-collar jobs in infrastructure, industry and agriculture."

"There are some regional bankers and economists who know what I'm talking about, because they know how bad things are in their Federal Reserve districts," he concluded. "They should join me in demanding that Bernanke leave, at once."