Financial systems are man-made. History has shown, time and again, that all financial bubbles eventually pop. And that, ladies and gentlemen, is what is happening right now. The biggest bubble in known human history, the parasitical, monetarist financial system of the Western oligarchy, which has dominated the globe for centuries, is popping, and we are headed for a major financial collapse in the short-term.
The financier “boys in the back room” are now openly discussing the likelihood of imminent systemic financial breakdown. For example: on Sept. 22, the European Central Bank’s financial risk monitoring body, the “European Systemic Risk Board,” issued its first-ever “general warning” that the EU financial system faces the risk of systemic failure. Risks to the financial stability of the EU banking system “may materialize simultaneously, thereby interacting with each other and amplifying each other’s impact,” it warned, identifying “three severe systemic risks,” other “elevated systemic risks,” and on top of that, the financial stability risks from “non-bank financial institutions and market-based finance,” colloquially dubbed “shadow banking.”
Only once, and that briefly with passing reference to the “energy derivatives markets,” did they mention the elephant in the room: the nearly $2 quadrillion in pure financial gambling bets upon gambling bets, which is now blowing out. They offered no solution, but to be vigilant and hang together.
The City of London’s Economist magazine itself has now weighed in. The first sentence of its Oct. 4 piece headlined “Groaning: Financial Markets Are in Trouble. Where Will the Cracks Appear?” is: “It is hard not to feel a sense of foreboding.” They continue: “The world is entering a new phase,” in which trouble in the financial markets could lead to “catastrophic pain … when financial institutions fail,” they warn.
They, too, mention only once in passing the detonator of the crisis, “derivatives,” and that only to assure their readers that the clearing houses which settle trades in stocks and derivatives are covered, not to worry.
But both The Economist and London’s Financial Times, the same day, worry that the financial oligarchy cannot simultaneously bail out their financial system and carry out its strategy of bringing down hyperinflation by raising interest rates, restricting monetary emissions and crushing economic activity at the same time. In other words, their policy of “QE"—"quantitative easing,” i.e., printing helicopter money—created today’s hyperinflationary threat to their system, and the Federal Reserve’s monetary restriction policy to supposedly deal with the hyperinflation has only succeeded in detonating the bubble.
So, rather than give up their oligarchic system, as has often also happened in history, today’s financial oligarchy—the interests grouped around the British Monarchy and King Charles—are all-in on a high-risk gamble that their control can be saved through global war, “democratic” dictatorship, and mass starvation.
But the solution is obvious! Do what the world’s preeminent physical economist Lyndon LaRouche insisted decades ago: Wipe out the financial bubbles, and put the system through bankruptcy reorganization. Governments guarantee everything needed to save the people and expand the real economy, and the speculators can go eat their financial paper, or learn an honest trade! Many countries outside the trans-Atlantic world are fighting to put their people first. Why shouldn’t we?
That is the fight to be waged now. Fighting for that new economic system is part and parcel of fighting to pull humanity back from the brink of nuclear war, where we find ourselves today. It is time to tell leaders in Washington, D.C. and European capitals: stop gambling with our lives.
Russia’s Ambassador to the United States Anatoly Antonov delivered a stark warning on Wednesday: “The administration’s decision to continue pumping the Kiev regime with heavy weapons only secures Washington’s status as a participant of the conflict. We perceive this as an immediate threat to the strategic interests of our country.”
Schiller Institute’s Helga Zepp-LaRouche suggested at the beginning of the week an image of the strategic situation, as like that of a dried-out lake or dried-out riverbed, where you have huge cracks, because what used to be moist is now dried out and therefore the surface cracks. Instead of complaining, look at the so-called Western alliance, in particular, as like such a dried-out lake, full of cracks. What is happening is so unbelievable, she proposed, that the idea that all of that is going smoothly, that people can continue with operations as they are, is ludicrous. What we see is the unraveling of almost everything, and at the same time, the formation of a completely new system.
In an example of the power of creative thinking by an individual in times like these, retired Swiss Lt. Col. Ralph Bosshard has authored a new article debunking the NATO/U.S. assertion that “Russia blew up the Nord Stream pipelines.”
Bosshard poses a paradox which can and will drive the NATO crowd wild: Given the physical realities of what it would take for Russia to have blown up those pipelines in the midst of the NATO-controlled Baltic Sea, the only way Russia could have done that would be if they had seabed warfare capabilities vastly superior to those of NATO. And if that is the case, then no underwater infrastructure in the NATO alliance is safe: no pipelines, no electrical or communications cables. And the Russian military, which the NATO narrative says is backward and losing in Ukraine, suddenly appears as the superior force. So which way does NATO want it?
Bosshard’s argument is summarized below, and as he requested, the Schiller Institute and EIR will circulate his argument worldwide.
It is when the rotten system cracks, that it can be buried forever. People around the world are telling the Schiller Institute and The LaRouche Organization in the United States: “This has gone too far. Let’s talk about solutions.” The Schiller Institute posted U.S. Col. Richard Black’s video, asking “Did U.S./NATO Blow Up the Nord Stream Pipelines?” as an invitation for today’s press conference, “We Will Not Be Silenced; Speaking Truth in Times of War,” and within 24 hours, nearly a quarter-million people have watched it, while the speakers list for the press conference has grown. Diane Sare’s Senate campaign is holding a rally this afternoon in front of her opponent, Senator Chuck Schumer’s office in New York City, asking “Is the Suppression of LaRouche Candidate Diane Sare a Prelude to Nuclear War?” And on Friday morning, Oct. 7, six former and current legislators from Latin America and the Caribbean are joining the Schiller Institute, Helga Zepp-LaRouche and Diane Sare, in an online symposium titled “Stop the War Before It Is Too Late; Eliminate the Causes of the War Danger.” Join us!
