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Financial Blowout Before the U.S. Midterm Elections in November? Time For a Four Powers Agreement and a New Bretton Woods

August 16, 2018
On August 15, 1971, President Richard Nixon addressed the nation on the topic of a new economic policy.
On August 15, 1971, President Richard Nixon addressed the nation on the topic of a new economic policy.

Wednesday, August 15, 2018, was the 47th anniversary of Richard Nixon's Aug. 15, 1971 announcement that he was taking the dollar off the gold standard, which de facto meant the destruction of the post-war Bretton Woods system. This opened the floodgates to the creation of a London-based "dollar" currency for global speculation, a cancer which ended up taking over the U.S.-based dollar itself. It also was the end of the entire fixed exchange rate system for trade between nations, which meant that, for developing sector nations, the wall between international speculation and their national currencies was demolished. Whole nations once again became colonial satrapies of the City of London with a living hell of war, drugs, and poverty quickly taking over.

This was, in fact, the first step towards wiping out the international Glass-Steagall regime of separation between productive and speculative banking –between monetarized credit lent for productive uses by sovereign nation states and money whose value was determined by a private entity, the City of London, for purposes of sheer accumulation of wealth by speculators. Then that was done officially in the U.S. in 1999, by the formal repeal of Glass-Steagall—with the consequence that Wall Street and the City of London created mounds of speculative derivative and corporate debt amounting now to some $1.5 quadrillion. Under the floating exchange rate system, governments are expected to cover demands for repayment of this debt by imposing austerity regimes on their citizens characterized by primitive living conditions and decadent mind-killing popular entertainments.

When this blew up in 2008, Lyndon LaRouche posed the solution: bankruptcy reorganization of the world’s economies by four countries, the United States, Russia, China, and India. These economies hold potential productive power to create a new world-wide human renaissance out of the collapse of the dead system, to move humanity to the next advanced stage of human development. Lyndon LaRouche said, in 2008, you either undertook this reorganization and launched a new Bretton Woods system, or the planet itself would die as physical economies suffocated under mounds of unpayable debt. Needless to say, his warning went unheeded in 2008 and the monster bubble has emerged anew in ever greater scope. Citizens here witness, helplessly, endless floods and failure of infrastructure, whole states, like California, being ravaged by homelessness, drugs, and fires.

One of the ruses used by the British Empire since the 2008 financial blowout, to try to keep that bubble afloat, has been the so-called "carry trade" fueled by zero-cost liquidity pumped into the system by Quantitative Easing, which was then shipped to high-interest emerging markets such as Brazil, Turkey, and other countries— where those economies were looted. The beginning of the Fed's "tapering" of QE and rising interest rates beginning in 2015, was a contributing factor in triggering waves of "reverse carry trade" financial flows out of emerging markets back to supposedly safer havens, such as the dollar. This, in large measure, is what we are seeing in the various manifestations of the financial crisis in Turkey, Argentina, Russia, Brazil, etc. Bloomberg has reported a 6% loss across the carry trade in the first quarter of 2018 alone.

When and how the entire bubble collapses, is unknown, but such a collapse is inevitable, as LaRouche warned repeatedly and accurately. Now, so-called experts across the world are warning that such a collapse is imminent. Faced with a deadly disease, sane people act and act immediately. The LaRouche political movement world-wide, is launching a new and urgent campaign for LaRouche’s Four Powers agreement to cancel and/or reorganize world’s unpayable debt and to form a New Bretton Woods fixed exchange rate system. This is the means to defeat the British led coup which has engulfed the United States. This is the means to ensure that the world not only survives the coming collapse of London’s bubble; but steps boldly into a new paradigm.

                                                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                                                        

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