LaRouche: "Biggest Economic Crash in Modern History Could Occur as Early as Mid-October, if Not Sooner"

Increase Decrease

LaRouche's Homeowner and Bank Protection Act of 2007 needed immediately with No Amendments

Lyndon LaRouche announced yesterday that he will be recording a message to the American people on Saturday in which he will spell out precisely what must be done in the face of the biggest crash in modern history. Referring to the Homeowners and Bank Protection Act of 2007, which he has designed, LaRouche said that if we don't pass this legislation, there will be no protection against what will hit the nation soon. What he has set forth is the one and only program capable of addressing the crisis. No other proposals or amendments to his program will succeed. Any other agenda should be cancelled. With LaRouche's program, when the crash comes we will still be standing. When the storm ends homeowners and federal and state chartered banks will still be standing. There are no other options. What LaRouche has set forth, nothing more nor less, is what is required.

The biggest collapse in modern history will probably hit in September-October. The only hope is to create a firewall, so when the storm hits, chartered banks will be left standing and homeowners will still have their homes. We must deal with this issue first, otherwise there won't be any country. LaRouche has been proven right and others have been shown to have been wrong on the nature of the collapse. Therefore, what LaRouche has set forth has to be done now. Period.

LaRouche stressed that if you don't have a country standing with banks still there and people not evicted, then you can't save the country. October may be too late. If this legislation is in place in early September, we can get through. If not, hell will take you. The time for debate is over. No amendments. This is the only chance we have.

The issue today is to maintain the existence of the United States under these conditions and there is only one way--LaRouche's federal legislation. This legislation must be pushed ahead of all other legislation. It is very simple. This is the only thing that will ensure we have a nation. Anything else has no relevance to the real situation today.

Bush Lying About the Economy:

President George W. Bush stands with Secretary Alfonso Jackson, of the Department of Housing and Urban Development, and Secretary Henry Paulson Jr.,of the Department of Treasury, during a statement Friday, Aug. 31, 2007, in the Rose Garden regarding homeownership financing. Click on image to view the video.

The proposals made by Bush yesterday will only accelerate the collapse of the housing bubble. You can't reorganize the mortgage loans, because writing off debts means blowing out assets, in a reverse leverage chain reaction. LaRouche referred to Bush's press conference yesterday as a "depress" conference. Everyone walked away certain the country was doomed. Even lower forms of life such as journalists left depressed. The only thing which Bush said with which LaRouche could agree was when Bush said that government has a limited role. As LaRouche put it: He is right. Government under his leadership is limited. He is extremely backward. He is mentally sick, but also mentally disabled. His mental state is only less of a danger to the nation than Cheney. He is a stupid, foolish jerk, whereas Cheney, his controller, is evil.

People who know better but who nonetheless call for the impeachment of both Bush and Cheney are ducking the issue. The threat of war against Iran is based on the Revolution in Military Affairs initiated by the Middlebury Monster Felix Rohatyn and George P. Shultz. Moreover, given the nature of the financial and strategic crises the nation and the world are now facing, we cannot go through a replacement of the administration as a whole. We simply have to get rid of Cheney. To go after Bush and Cheney is to create a problem. Whereas by getting Cheney out, Bush can be neutralized. If Nancy Pelosi says no, tell her: "Tighten your screws. Your face is falling."

Bernanke's description of the ongoing collapse of the international financial system as a mere "episode" in his speech at Jackson Hole was laughable. As LaRouche put it, Bernanke is simple minded. He is probably in menopause. His comments were purely boola boola for the local fraternity.

Every day there are numerous "little stories" about the financial and economic carnage. On Friday, we learned that the Finance Minister of the German state of Saxony resigned in the context of the developments surrounding the collapse of the Saxon Landesbank. However, the little story is not the story, but rather a diversion from the real story, which is that we are in the process of a chain reaction collapse of the world system. As LaRouche emphasized this is not a Saxony crisis, but rather a global crisis.

The process described by Lyndon LaRouche's Triple Curve pedogogy is key, especially the second version of the curve, where in the rate of the rate of monetary growth exceeds that of the financial aggregates, as the rate of physical output declines. They are monetizing bullshit, turning fake assets into fake money.

Debt is being treated as an asset--one person's debt becomes another person's asset, which becomes the basis for the second person to take on debt, which becomes someone else's asset--the assets of the system are nothing but a leveraged chain of unpayable debts, which will detonate in a chain reaction. We're seeing grenade-level explosions now, with much bigger explosions to come.

This is a non-linear process, in which you cannot predict trends. You can only predict hypertrends: each time an asset collapses, it increases the rate of collapse of other assets, and accelerates the rate of collapse of the system as a whole.

This is a global collapse, centered in the Cayman Islands--it's the British system.

The only rational policy is to build firewalls to freeze and delay the collapse, to give us time to work things out. We don't give a damn about the fakers, let them go bankrupt.

You can not deal with this as a series of discrete problems, dealing with one at a time. It won't work.

Sachsen LB's Ormond Quay fund is an example. It was full of assets supported by credit guarantees, the assets were considered valuable but were actually worthless.

The rate of the collapse will increase hyperbolically,-- it will be gone by mid-October or earlier. If the system hits a big landmine, it will accelerate the process. The closer we get to the final blowout, the greater the amount of the unresolved debt.

Don't try to quantify this, because you can't; it is worthless, a system full of pieces of crap called assets. Give some functional examples of the process at work. Joe Blow defaults on his debt, which Bill Blow counted as an asset; so Bill Blow defaults, etc.

This is a gambling house. This is Galileo Galilei's specialty. He studied the mathematics of gambling, and created formulae of the laws of chance to help gamblers improve their odds.

Contained in: From Lyndon LaRouche