Standing At The Gates of Hell, And Demanding Entry
June 19, 2012 • 8:05AM

LaRouche PAC warned last week, that should current policies continue, the only question on the global financial front was if this Monday would bring "One, Two, or Three Systemic Explosions of the Euro System?"

Monday June 18 has arrived, and the brief few minutes of relief in the lunatic asylum called "Trans-Atlantic governments" that the "Greek" systemic explosion had been put off a few days by election results, were followed quickly by the realization that the European continent's fourth largest economy, Spain, was blowing up at an even faster rate, with the third largest, Italy, following in its wake. With that, the aptly-named Bill Gross headed global bond fund giant PIMCO, proclaiming that German bonds are also now a credit-risk (June 18, Bloomberg TV).

In other words, the system, as a whole, is gone. Spanish government ten-year bonds traded at nearly 7.3% at its high on Monday, with rates on Italy ten-year sovereign paper rising to 6.06%. At those interest rates, Spain cannot refinance its debts, and it has debt auctions scheduled on June 19 and 21, provoking desperate talk of who and how to possibly bail out the entire private and public Spanish debt—which EIR roughly estimates at a EU1 trillion (give or take). And then Italy?

Still, the cries to bring on global Weimar hyperinflation by throwing more and more fictitious values upon the flames of already-burning paper dominate the Trans-Atlantic scene.

Spanish Finance Minister Cristobal Montoro told his Senate today that the situation is "critical," and the European Central Bank must respond with "firmness and realibility" to defend the euro project—that is, by pumping in money.

"We have run out of options," the head of the Organization of Economic Cooperation and Development (OECD), Angel Guerria, insisted. "The Europeans have to display their awesome firepower"; the ECB has to deploy "every instrument, tool, and asset" in its arsenal to defend Spanish and Italian bonds.

London's Ambrose Evans-Pritchard adopted the attitude of "Bring it on!" He wrote in the June 17 Sunday Telegraph: "Fed chair Ben Bernanke requires a crisis somewhere to outflank his own hawks and slip another round of quantitative easing (QE) past the Tea Party Congress before the fiscal cliff — 4.5% of GDP in tightening — hits the U.S. economy with a sledgehammer this winter. Mario Draghi at the European Central Bank needs one even more badly to check his own liquidationist reactionaries before they destroy Europe's post-War order altogether."

And so Trans-Atlantic leaders huddled in Los Cabos, Mexico for the June 18-19 G-20 meeting, ganged up against German Chancellor Angela Merkel to get her to agree to open the spigots, so "Europe can do its part," along with the Fed, the Bank of England, et. al, in flooding the world with liquidity which will only accelarate the demise of the system.