Exploding, Political Earthquakes Under

The New Citizen Extra June 2005 Page 1 THE NEW CITIZEN ® Official Publication of the Citizens Electoral Council of Australia Web: http://www.cecaust.com.au Email: [email protected] EXTRA June 2005 50c (inc GST) Print Post: 30601/00002 The great derivatives crash: “Mother of All Bubbles” Exploding, Political Earthquakes Under Way June 2—On May 5 the dreds of billions of dollars Standard & Poor’s rating in pension funds onto the agency downgraded al- U.S. government, in a vain most one-half trillion dol- attempt to stay in business. lars of General Motors and The combined auto/airline Ford Motor Company bankruptcies will destroy bonds to junk bond status. much of the U.S.’s remain- This unleashed an earth- ing machine tool industry, quake in the global finan- turning the already super- cial system far worse than indebted U.S. into a Third the LTCM hedge fund fail- World country. ure of September 1998, These breathtaking fi- which almost brought nancial/economic develop- down the world monetary ments are both the back- system. At least several ground and the trigger for major hedge funds of the a series of equally stunning US$ 1 trillion hedge fund political developments in industry were wiped out by both the U.S. and Europe losses in their highly-risky throughout May. As the World trade in derivatives dwarfs the estimated total world GDP of $55.5 trillion. The derivative trades, and their world’s leading economist, exploding financial bubble is driving the strategic crisis, in which U.S. Vice President Dick Cheney (shown at right, on the cover of Executive Intelligence Review magazine, May losses were immediately Lyndon H. LaRouche, Jr., 27) and his controllers want to unleash nuclear weapons to terrify the world into submission. transmitted worldwide summarised the situation in through the “daisy chain” his May 14 2005 memo to coup d’état”. (See below.) actually being discussed is paradigm shift” is underway, June, as revealed in a of interlinked derivatives the U.S. Congress, “On the Then, on May 29 and June whether the European cur- toward dumping the entire Washington Post May 14 contracts whose annual Subject of Strategic Bank- 1, in unexpectedly heavy rency union should not be dis- rock/drug/sex countercult- story and an Executive In- turnover is now $US 2 ruptcy”, “A rising series of turnouts, the French and mantled.” (emphasis added) ure and globalist paradigm telligence Review cover quadrillion or more. Pan- political earthquakes is now Dutch populations voted In Germany, the ruling of the “68’er” generation story of May 22, both of icked world central bankers shaking the world…Now, decisively against the at- coalition of Chancellor now running much of the which reported on the have been on emergency what will happen, very tempt to establish a one- Gerhard Schroder’s Social world. The desperation of Bush Adminstration’s op- mobilisation ever since, to soon, will stagger your im- worldist European Union, Democratic Party (SPD) the financial oligarchy erational plan for nuclear first somehow keep their fingers agination. The world as bringing the globalist and the Green Party is which unleashed this strike, under its recently- in a dyke which is spring- you thought you knew it, Maastricht Treaty which has breaking apart under the “globalist” system in the adopted “CONPLAN 8022- ing leaks everywhere. (See the day before yesterday, dominated Europe since the deepening depression, and first place, was nowhere 22”, known as “Global feature story, p. 2) is no longer the same 1989 fall of the Berlin Wall, Schroder has announced more evident than in the Strike”. The purpose of such But it is not only paper world today.” to a screeching halt. Indeed, that the SPD will “run Cheney/Bush coup attempt strikes would be to terrify which is vaporizing. Al- On May 23, the radical the leading German daily against all parties” in a national against the U.S. Constitu- the world into submission most the entire U.S. auto rightwing Bush Adminis- Handelsblatt on June 1, re- election in mid-September, tion, whose purpose was to fascist austerity regimes industry, including the sec- tration was delivered a ported, “There are rumors meaning not only the con- not just to ensure their own á la Hitler in the 1930s De- ond and third largest com- sharp defeat, when seven which any reasonable per- servative parties, but also choices of judges, as pression, beginning with panies in the world, GM U.S. Senators of his own son would have considered against the fanatically anti- widely reported. Their real fascism in the U.S. itself. and Ford, are heading for Republican Party, joined so absurd a few weeks ago, growth, pro-austerity Greens. aim was to break the U.S. (For more on all this, in- bankruptcy, while much of with Senators from the that they would not even The entire world’s politi- Senate, in order to be able cluding LaRouche’s evalu- the U.S. air transport in- Democratic Party to defeat have merited a denial. Yet, cal geometry is shifting to launch nuclear first ations and his own decisive dustry is also bankrupt, what some Senators openly for the past few days, in rapidly, and, as LaRouche strikes against North Ko- role in these events, see and trying to unload hun- described as an “attempted financial markets, what is observed, a “new cultural rea and/or Iran as early as www.cecaust.com.au.) LaRouche, U.S. Senate Defeat Cheney Coup Attempt June 1—Late in the day change in the Republican- Cabinet and judicial ap- situation.” Noting that the on May 23, in a series of dominated Senate which pointments, nor negotiate significance of the event events that most of the would destroy the Senate’s treaties, without Senate had been almost entirely world is yet to compre- role under the U.S. Con- approval. Cheney’s inten- blacked out of the Euro- hend, George W. Bush was stitution as a “check and tion was to both change the pean press, LaRouche said, rendered a “lame duck” balance” on an out-of-con- laws, as well as break the “An attempted coup d’état, President, just four months trol Presidency, a biparti- will of the Senate, so that such as that one just de- into his second term, as a san group of Republican the Bush Administration feated in the Senate, a coup move led by Vice President and Democratic Senators could act like Caesar in an- attempt within the world’s Dick Cheney to carry out defied him, and negotiated cient Rome. leading nuclear-armed a cold coup by destroying a compromise to keep the LaRouche, who had power, ought to be re- the functioning of the U.S. Senate functioning as it had played a crucial role in garded as of earth-shaking Senate, was dealt a dra- since the U.S. Constitution shaping the environment significance by any serious matic, stinging defeat. Just was ratified in 1787. Un- for the Cheney/Bush de- political leader in any part two hours before Cheney der that Constitution, the feat, noted in a May 28 of the world.” (who is president of the Senate is mandated to pro- statement that “The Mon- What must be under- Senator Harry Reid (l.), Democratic Party leader in the U.S. Sen- Senate, as well as Vice vide “advice and consent” day, May 23 events in the stood, LaRouche empha- ate. Lyndon H. LaRouche, Jr. (r.), the world’s leading economist, is President) planned to ille- to the President, who may U.S. Senate, mark a quali- sised, is the distinct nature rallying the resistance to Bush/Cheney. gally force through a rule not declare war, nominate tative change in the world Continued p.2 Web: http://www.cecaust.com.au Email: [email protected] Page 2 The New Citizen Extra June 2005 The Fuse Has Been Lit… The Ticking Derivatives Time Bomb n May 5, 2005 Stand- Oard & Poor’s downgraded the debt of the world’s largest company, General Motors, to junk bond status, and that of Ford Motor Company soon after. The combined debt of these companies—the second and third largest in the world—is $483 billion, greater than the entire con- tinent of Africa. Over- night, the volume of junk bonds (“below investment grade”) in the U.S. dou- bled to almost a trillion dollars, and a seismic shock was unleashed in the world financial system. The tsunami has not yet hit the shore, but the earth- quake which triggered it is In 1995, LaRouche issued his famous “Triple Curve” graphic, to clearly orders of magni- help people conceptualise the collapse. The curves do not repre- sent specific figures, but general trends. In order to keep the finan- Compare the rate of growth of derivatives (the classic form of “financial aggregates”), to the “financial tude greater than that cial aggregates afloat (derivatives, stocks, bonds, etc.), the finan- aggregates” curve in LaRouche’s Triple Curve. (Graph 1) which collapsed the LTCM ciers must 1) loot the physical economy (the bottom curve) and 2) hedge fund in September print money like crazy (monetary aggregates curve), to enable the 1998, which came within ever-expanding financial aggregates to continue to be bought and a whisker of bringing down sold. At the point where the rate of printing new money passes the the world monetary system, rate of growth of financial aggregates, hyperinflation takes off, as is as Fed Chairman Alan now happening with petrol, food and housing, for instance. A full- Greenspan admitted some scale collapse quickly follows.

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