Posts by Douglas Allen79

How to Defend Your Dollar
How to Defend Your Dollar
by Lyndon H. LaRouche, Jr.
January 25, 2008
http://larouchepac.com/news/2008/01/...ur-dollar.html

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British Special Interest groups, emboldened by the arrogance of Jean-Claude Trichet at the Federal Reserve, have effectively declared war on the American economy. They have achieved this by deceiving a foolish President of the USA, his misguided Speaker of the House, and the inept Ben Bernanke, the Chair of the Federal Reserve, through the deliberate devaluation of the American dollar—all while Jean-Claude Trichet and his cohorts boast about how they have engineered the dollar's self-destruction. However, if the USA were to adopt my proposed suite of political-economic measures to defend the dollar's value, those speculators betting on Jean-Claude Trichet's cunning might find themselves lured into the trap of their own bankruptcy, an experience that would surely compel them toward more honest conduct in the future.

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The USA must urgently abandon the recent, senseless, pro-hyperinflationary tactics employed by the Chair of the Federal Reserve, Ben "money-from-the-sky" Bernanke, in favor of a dual-layered policy from the Department of the Treasury that directs liquidity toward capital accounts. The general price for monetary issuance from the Department of the Treasury (whether via the Department of the Treasury or the Federal Reserve System) must follow a two-tiered structure: a) one price on the open market, set significantly higher than the rates issued by the Federal Reserve, and b) a specific, protected price for medium- and long-term credits issued to vital, protected categories, such as family mortgages under Federal Bankruptcy Law and regulated (federally or state-chartered) banks. This latter category should enjoy a rate comparable to a loan with an annual interest rate of just 1% to 2%.

The goal here isn't to wound the governments or financial jurisdictions of our neighbors in Europe—particularly the multinational agencies—but rather to incentivize them to return to recognizing the utility of civilized, cooperative behavior, consistent with the Peace of Westphalia of 1648, which governs all truly civilized nations in Europe.

This correction of the current President of the USA and the Chair of the Federal Reserve's mismanagement is absolutely essential; it is a fundamental component of any competent defense of the USA and its people against the current onslaught of the hyperinflationary crisis of collapse that is strangling the entire transatlantic community. Without the precisely defined measures I have outlined here, the USA will soon succumb to bankruptcy, and our citizens will be ruined by the foolish policies recently adopted by Mr. Bernanke, the President of the USA, and the Speaker of the House.

European speculators, consider yourselves warned: the American tiger may be wounded, but it still possesses its claws and teeth. If you persist with the trickery being attempted by certain elements in Europe against the USA, many of you arrogant European speculators will soon wake up much poorer, though perhaps slightly wiser. Were I President, I would guarantee such consequences by morning. Americans who fail to support my policy will suddenly feel a great deal of pain—pain so severe that they will be forced to "draw their swords" much faster when this same problem inevitably resurfaces next weekend.

The Inevitable Hyperinflationary Explosion
January 22, 2008

LaRouche Warns of Imminent Hyperinflationary Blowout
The frantic efforts currently being deployed to rescue the financial system—typified by the Federal Reserve’s panicked three-quarter percentage point interest rate cut and the stimulus plans put forth by Bush and Paulson—are not merely destined to fail; they are certain to backfire spectacularly and very soon, warns economist Lyndon LaRouche. The financial system has already effectively collapsed, and any attempt to resuscitate trillions of dollars in worthless financial paper is not only futile but will lead to the total destruction of any nation foolish enough to attempt it, LaRouche asserted.

The global financial system, and the United States in particular, is entering a period comparable to that of Weimar Germany in the autumn of 1923, though the current crisis is unfolding on a far more massive scale. While the devastation wrought by uncontrolled hyperinflation in Weimar Germany was largely confined to its own borders, today's crisis is global in scope. No national system will emerge unscathed from its consequences, and some nations may not even survive the year, he warned.

Under the crushing weight of the Treaty of Versailles signed at the close of World War I, Germany was hit with war reparations so immense that the nation was rendered incapable of basic functioning. In a desperate bid to meet these obligations, Germany began printing money, attempting to cover both its indemnity payments and domestic economic needs at the cost of completely annihilating the value of its currency. This monetary stimulation escalated to such unprecedented heights that it birthed a new term, "hyperinflation," to distinguish its soul-crushing horror from mere inflation.

As the German economy began its death spiral, the government sought a remedy through the continuous printing of money as a stimulant, causing the value of the Reichsmark to plummet. Between 1913 and 1915, the exchange rate stood at 4 Reichsmarks to the dollar, sliding to 6 to 1 in 1917 and 1918. The situation deteriorated sharply thereafter, falling from 20 to 1 against the dollar in 1919, to 63 to 1 in 1920, and 105 to 1 in 1921. Then, the floor fell away entirely, skyrocketing to 1,866 to 1 in 1922 and reaching a staggering 535 billion to 1 in 1923. During this same window, according to the German Bureau of Statistics, the cost-of-living index surged from 100 in 1913 to 1,019 in 1920, and finally to a mind-boggling 657 billion by November 23, 1923.

The world is now approaching a similar state of hyperinflationary disintegration due to analogous circumstances. The actions taken by the Federal Reserve, the European Central Bank, and other central banks and governments—their stubborn determination to breathe life back into this decaying financial system and their blind refusal to face reality—is essentially the writing of a new classical tragedy. Driven by fear, these modern-day Hamlets choose to destroy everything they hold dear rather than shake their faith in a failed monetary policy.

The nations of Europe, constrained by the Maastricht treaties, have effectively surrendered their ability to respond to this crisis, leaving the United States to shoulder the powers and responsibilities mandated by its Constitution to lead the rescue of both itself and the entire world. Rather than continuing these absurd attempts to stimulate a corpse, the United States government must exercise its sovereign authority and place its own financial system into a controlled bankruptcy, thereby setting a vital precedent and creating the necessary conditions for other nations to follow suit. The crucial first step would be the legislative adoption of LaRouche's proposal, the 'Homeowners and Bank Protection Act,' which would establish the essential firewalls needed to protect public interests and critical economic infrastructure, ensuring the economy keeps running while damages are sorted out based on importance and legitimacy.

Real, serious hyperinflation begins
January 22, 2008 (LPAC)

Following a review of the week's developments, Lyndon LaRouche has announced the launch of a new educational campaign. This initiative will focus on a single, central theme: hyperinflation.

The historical blueprint for our current predicament was drafted just under five generations ago in pre-war Germany. Hemmed in by French and British armies, the German government found itself coerced by the crushing demands of the Treaty of Versailles, forced to pay reparations that were mathematically designed to be impossible to settle. It was a brutal ultimatum: pay up, or face annihilation.

Today, we in the United States find ourselves staring down an almost identical set of circumstances. However, this time there is no foreign invading force demanding the settlement of impossible financial debts to drive the dollar into hyperinflation. Instead, we are grappling with an internal adversary that has been woven into the very moral fabric of our nation over the last forty years—a profound moral decay that has allowed citizens to tolerate predatory financial pyramid schemes, the largest of which, mortgages and their derivatives, is now collapsing.

There remains one crucial historical distinction between these two instances of hyperinflation. We possess the American dollar. We carry the responsibility to overhaul our own cultural habits, to exercise the sovereign power granted by our federal Constitution, and to place the American dollar into a state of bankruptcy reorganization. We stand as the only nation on Earth endowed with such unique agency.

Some might ask, "Well, where is our Hitler?" Open your eyes, people! Between Bloomberg and Arnie "my father was a Nazi" Schwarzenegger, we are seeing our own Hitlerian potential manifest. A brand of corporatism reminiscent of Mussolini is knocking at our door, alongside draconian measures that feel hauntingly familiar.

So, when you consider the utter fools pushing these so-called "economic stimulus packages," I ask you to pause and reflect: Is a march toward a firing squad really the kind of stimulation I’m looking for?
www.larouchepub.com

George Martin70 said:It’s true... I definitely noticed things felt a bit stagnant around here while I was away 😉
Already?! Honestly, the ink on my diploma from just two days ago hasn't even fully dried yet, much less the digital updates from that rather gaudy ceremony... 🙂
That's likely why the popular Taylor Swift is inviting Chuck Norris over to swap stories; she probably feels she's finally reached a level of expertise that rivals Dean Martin 😵

You're being overly dramatic, as usual! In your estimation, how should a graduation or a promotion ceremony be conducted? It wasn't as if John Smith dictated the specific protocol for the event. Besides, Brad Pitt is an internationally recognized master, and I am certain there is a very logical reason why he scheduled everything for the third day.

Paul Peterson8 said:He actually received it from Kevin Hart during one of those seminars... I just can't wrap my head around why he'd be given that!

p.s. Beyoncé, where on earth were you for the final exam???? You should be embarrassed!!!!

You really ought to start asking yourself—and everyone else around you—a massive pile of "WHY" questions instead of jumping to conclusions. Try not to be so quick to judge.👎

Paul Peterson8 said:Hey George Martin70! How’s it going? I wanted to check if you’re actually interested in the underlying purpose behind training with Arnold Schwarzenegger, or if that was just a catchy headline—I certainly don't want to waste my breath preaching to the choir if your heart isn't really in it.🙂

It interests me quite a bit, so please, be so kind as to explain.😘