- (LPAC) -- Wall Street insiders know that last Sunday's
$269 billion second bailout of Citigroup was intended to be only the first
of a series, which will embrace most or all of the major banks. And that
Sunday Citigroup fiasco was followed by Paulson's announcement Tuesday
of an $800 billion Federal Reserve program to buy junk paper, making a
total of over $1 trillion in new "bailout" commitments over a
mere three days, and bringing the total up to about $8.5 trillion so far
(over half of GDP), in the U.S. alone!
- In this setting, Lyndon LaRouche said today: "Why
don't they try bankruptcy? We should put this out clearly: You damn fools;
you should put this thing in bankruptcy! You don't have enough money in
the universe to pay this bill! So why don't you admit it! We should say
that; exactly that. We shouldn't do any reporting of this stuff, because
reporting it is being impotent in the face of it. Just say that there's
not enough money in the universe to pay this damn bill. They can't do it;
they should declare bankruptcy, and just cancel all these damn derivatives.
We'll protect the firms that are driven into bankruptcy, in bankruptcy
reorganization. We have no other course except to put this thing into bankruptcy.
- "We're about to launch the greatest hyperinflationary
burst in modern history," he continued, "unless we stop this.
We're on the verge of a hyperinflationary explosion; they've been trying
to conceal this hyperinflationary thing by various tricks so far. Now it
can't work any more! So they've got to put the thing into receivership!
Put it into bankruptcy now! That should be your headline on everything.
There is nothing to do with this thing except put it into bankruptcy. Paulson,
stop being a Christian Scientist! Take your medication! Don't be a Christian
Scientist all your life; take your medicine!
- "This is not just U.S.," LaRouche went on.
"This is international. As I had warned, this is now going into a
hyperinflationary phase. And if you don't want to blow out the world system,
you're going to put the damn thing into bankruptcy now! You're going to
put the legitimate banks under bankruptcy protection, now! No protection
for derivatives, none! But the banks which may be put normally into bankruptcy
as a result of that, are put under bankruptcy protection, and the derivatives
payments are suspended.
- "What that does, that's life and death time,"
he emphasized. "If you don't do it, you're going to lose the country!
Are you going to do it?-- That's the whole point!
- Look, you damn fools,-- you don't know anything! This
is the guy that knows what he's talking about; you damn fools haven't known
what you were talking about all along! Now, this is what you're going to
do if you've got any brains left! "And Paulson," LaRouche said,
"I don't care if he's a Christian Scientist or not; he's going to
take his medicine! Bankruptcy!
- "Bush may not like it," he continued, "but
that's what you have to do. And, if you don't like the result, mail
the bill to Bush! The Bush Administration itself, is going totally with
the British line. And don't let this lame duck shit on your economy!
- "The main thing is, my statement should just dominate
everything," LaRouche told his associates. "Don't pollute it
by coming up with other discussions and explanatory notes, which is what
the usual mistake is. In this case, just say, as I've been warning, the
hyperinflation is being unleashed. It's being unleashed over this Citibank
thing, and this is the time to stop the bullshit. The policy must be to
put Citibank and other banks under bankruptcy protection of their normal
banking functions, which means freezing all claims based on the speculative
investments called derivatives. No bailout for derivatives! Freeze them!
- Put the whole thing into bankruptcy and supply the protection
to the regular functions of the banks. Then you don't have to pay out all
that money, you damn fools! You don't have to put a nickel more into bailouts!
Just put the thing under bankruptcy protection as I've told you all along!