What Looks Impossible Today May Become Inevitable Tomorrow
Red lights are flashing across the entire trans-Atlantic financial system, signaling the danger of an imminent financial and banking blowout which will make 2008 pale in comparison. This, on the eve of the Aug. 22-24 Jackson Hole, Wyoming annual policymaking meeting of the world’s central bankers and leading international financiers, and the Aug. 24-26 summit of the heads of state and government of the Group of 7 developed nations, which will be held in Biarritz, France.
A grim, sickly pallor hangs over both meetings—at least for those leaders willing to admit that the British Empire’s entire trans-Atlantic financial system is hopelessly bankrupt, and that every effort to date to bail out its $1.5 quadrillion speculative bubble has failed miserably.
Bail-outs on steroids, in the form of over $15 trillion in quantitative easing (QE), were tried and failed. Bail-ins collapsed before they even got off the starting blocks, because they were politically impossible. Negative interest rates are now the dominant reality across most of the G7 nations—the U.S. is the main exception, but it is rapidly heading in that direction—which is a form of highway robbery against the targeted populations, and a marker of extreme financial dysfunction. Tens of trillions of dollars of phony “green bonds” are soon to be issued, in another desperate attempt to loot physical economies and bail out the City of London’s and Wall Street’s speculative bubble. The Brexit separation between the United Kingdom and the European Union now looms for Oct. 31, which threatens to pull the plug on the City of London’s control of the global derivatives trade—which accounts for about 80% of the total international financial bubble.
And now a policy paper has been prepared for the Jackson Hole confab by top central bankers and others working with BlackRock, the largest private equity group on the planet, which proposes a brazenly suicidal “regime change in monetary policy that’s as big a deal as the one we saw between pre-crisis and post-crisis”—i.e., the quantitative easing hyperinflationary scheme that was unleashed after the 2008 blowout. Their proposal is for central banks to put governments in de facto receivership and themselves “go direct” with vast financial flows to bankrupt public and private sector recipients. This is the equivalent of mainlining financial heroin into the veins of a hopelessly addicted near-corpse—and it will have similar results.
Students of the peerless physical economist Lyndon LaRouche will recognize this situation as one where the rate of growth of monetary aggregates (e.g., QE) of LaRouche’s “Triple Curve” or Typical Collapse Function, has so far outstripped the rate of growth of total financial aggregates (e.g., derivatives), that there is no possible rate of additional monetary hyperinflation that can prevent the $1.5 quadrillion financial aggregates bubble from imploding—and with it, the physical economies of those parts of the world that have not joined China’s Belt and Road Initiative.
Unless, of course, LaRouche’s bankruptcy reorganization of the current trans-Atlantic system is carried out in time. That will require the United States joining with other great powers such as China, Russia and India to put the British Empire and its financial system out of business, permanently.
As Russian President Vladimir Putin told a joint press conference with French President Emmanuel Macron, after a summit between the two leaders yesterday: “What looks impossible today may become inevitable tomorrow.” Putin was referring to the prospect of creating a common Europe from Lisbon to Vladivostok. But the same principle applies to the state of the world economy and financial system today.
As Helga Zepp-LaRouche stated to associates yesterday: “I think that [Putin’s] formulation also applies emphatically for the implementation of Lyndon LaRouche’s solutions to the present crisis.... As the crisis become so great, what seems to be impossible now, namely to implement Glass-Steagall and a New Bretton Woods and a Four Power agreement for the common aims of mankind, will become inevitable tomorrow....
“The situation is coming to a complete polarization between ecofascist ideology, which is basically an ideology like the Nazi ideology was, no less dangerous. The alternative is to have a New Paradigm where the future of mankind has to be organized by scientists and Classical artists, because these are the only two essential groups of people who believe in verifiable universal principles. Lyndon LaRouche stressed that all the time: that you have to have politics based on the physical laws of the universe, and the only people who know that are people who believe in discovery, which is universal.”