Obama Pummeled By Economists On Massive Unemployment In U.S.

"Gone Bunny" Obama hopped another step toward retirement today, by claiming that he is bringing a "recovery" to the American people. Meanwhile, he was hit with two attacks on his coverup of the massive joblessness in the U.S., which can be solved only through Lyndon LaRouche's "NAWAPA Project".

Economist Leo Hindery, Jr. took aim at the Obama Administration's lies, and Tim Geithner specifically, in the Aug. 17 Huffington Post, declaring:

* The U.S. unemployment rate is now 18.3%, not 9.5%;

* The number of real unemployed workers in all four categories of unemployment is 29.3 million, not Obama's 14.6 million figure;

* Since Obama took office, the number of real unemployed workers has increased by 4.6 million. The economy needs to add about 150,000 new jobs each month just to keep up with population growth;

* In real terms, the jobs gap is 21.3 million new jobs.

Obama's $85 billion government bail-out of the auto industry had no connection to American auto jobs. Hindery says U.S. auto production will decline over the next 10 years because of off-shoring; GM has invested over $4 billion to expand its auto production in Mexico, while laying off thousands of U.S. autoworkers. Three weeks ago, GM spent $4.5 billion to buy AmeriCredit, a sub-prime lender, which, the NY Times reported, is committed to "extending loans and leases to [GM] customers with questionable credit."(!)

There is no credit mechanism to build national infrastructure, to put what Hindery calculates are some 5 million out-of-school unemployed youth to work. Three years after a Minnesota bridge collapsed and killed 13 people, and spotlighted the 71,000 substandard bridges which existed in the U.S. in 2007, the same number remain substandard today.

Paul Craig Roberts makes the same point in Information Clearing House. The Obama Adminstration is lying: "'Our government' tells us that the unemployment rate is just under 10%, a figure that would have wrecked any post-Great Depression administration. But, since the Clinton Administration, the government no longer counts Americans who have been unemployed for longer than one year. Once the unemployed hit one year and one day, they are dropped from the unemployment rolls and no longer counted as unemployed.... Right now, if measured according to the methodology of 1980, the U.S. unemployment rate is about 22%.

Lest anyone think this callousness toward the unemployed is unintentional, the final piece of the picture is the long-standing opposition of Obama's National Economics Council Director Larry Summers to unemployment insurance. In a 1979 paper for Brookings Institution co-authored with Kim B. Clark, "Labor Market Dynamics and Unemployment: A Reconsideration," Summers wrote: "Empirical evidence shows that two causes [of recorded longterm unemployment-ed.] are welfare payments and unemployment insurance ... The second way government assistance programs contribute to long-term unemployment, is by providing an incentive, and the means, not to work."

Weimar Hyperinflation: Relaunching "Securitization"

The Obama Administration's declaration that it intends to go whole-hog in supporting the "securitization" markets in mortgages, echoes the international British imperialist drive.

European Central Bank Executive Board member José Manuel González-Páramo enunciated the policy in a speech in London back on Jan. 17. He said that the "re-launching of the securitization market is crucial to support banks' needs for refinancing and, in fine, for allocation of credit to the real economy." The 20 largest banking institutions of the eurozone have close to EU800 billion of long-term debt having to be refinanced from here to 2012, said González-Páramo to justify his call.

On Aug. 10, the head of the British Banking Association, Stephen Green, wrote to Chancellor of the Exchequer George Osborne that the association would give the state, next October, proposals elaborated by a committee chaired by the heads of Britain's six main banks: among those proposals "the re-launching of the securitization market and the improvement of mechanisms to finance exports."

In France, in the context of its own "Financial Regulation Law," so-called, the government allowed for a much more enhanced securitization than France had ever had before, and in the meantime, on July 20, a special report commissioned by the Stimulus Minister and presented to Economics & Finance Minister Christine Lagarde, called for massive utilization of securitization techniques in the context of an equally massive adoption of the public-private partnership (PPP) style financing!

Geither Organizes Call for Hyperinflationary `Explicit Guarantee' Bailout of All Mortgage Backed Securities

Tim Geithner's conference in the Treasury's ornate Cash Room this morning was on "The Future of Housing Finance," the main dynamite keg for a British-demanded new hyperinflationary bailout of the banking (or, non-banking) system. The London Financial Times had issued the editorial orders again today: Damn the torpedoes, print all the money necessary to drive housing prices (i.e., mortgage-backed securities values) off the depression floor, and UP. Geithner represents an Obama White House which wants desperately to comply, despite political mass-strike opposition and the hyperinflationary futility of the policy itself. Days ago, Lyndon LaRouche had commented, "Another round of hyperinflationary swindles around Fannie and Freddie is coming."

And it was. Geither and HUD Secretary Shawn Donovan played "democracy," saying nothing new in their own speeches and letting their banker panelists — in particular, Bill Gross of the giant PIMCO bond fund — issue the call. "Full nationalization of mortgage finance!" cried Gross. "The economy is approaching a cul-de-sac. We need a positive stimulus. Refinance all current mortgages at lower rates. Guarantee all MBS based on this." (Gross had announced only last week that his PIMCO would be going bigger into buying MBS!)

The head of Bank of America's mortgage/securitization operations, Barbara DeSoer, had already called for an "explicit guarantee [by the government—ed.] of mortgage-backed securities," the super-toxic crap debt which the banks have refused for three years to write down.

So Geithner then announced his discovery, that "a consensus seems to be emerging" from his conference panel, for a government guarantee of all MBS values! An hour later, Donovan, running the second conference panel, saw fit to remind that there had been "something of a consensus on the earlier panel for an explicit, rather than implicit, guarantee of MBS."

That's only about $3.5 trillion. Once, three and a half years ago, it was claimed to be $6 trillion. Will Obama and Bernanke have the Fed and Treasury print money to guarantee, say, $3 trillion of that (a showy little "haircut") for a bailout? Asked his opinion, one Congressional aide at the conference said he didn't know, but "it's starting to look that way."

London Issues Orders to Obama: Hyperinflate!

The British Empire's messengers continue to bark out orders to their Obama administration in Washington, that he has to hyperinflate the financial system like there is no tomorrow. After all, it worked really well for Weimar Germany, didn't it?

On the day of the Washington confab on "The Future of Housing Finance", chaired by Treasury Secretary Geithner and HUD Secretary Donovan, the Financial Times editorialized that the U.S. housing bubble must not be allowed to pop, and that in fact a brand new one should be built on top of the old one. It is "politically and economically imperative to keep house prices high and rising," they intoned, since "the U.S. is still not in a position to bear a tidal wave of foreclosures... Cramming down mortgage assets would pull the rug away from under a barely recovering banking system."

The only problem with the FT's description is that the banking system is already hopelessly bankrupt, and that a second tidal wave of foreclosures has already begun. For example, mortgage delinquencies (defined as being 3 months or longer in arrears) rose nationally from 3.3% in 2008, to 9.4% today—a near tripling. In 23 congressional districts in the worst-hit states—California, Nevada, and Florida—delinquencies are running at 20% and higher.

In a private discussion, an economist at one of Germany's regional Landesbanken confirmed that there is much discussion in financial circles about another U.S. government mega-bailout in the works, in the range of $2.5-3 trillion dollars on top of the $2.3 trillion in toxic paper that the Fed already owns—exactly as British spokesmen have been demanding of Obama for weeks. The fresh Monopoly money would be targetted to bail out not only the real estate speculative bubble, but other toxic assets as well. The Landesbank economist said that printing $3 trillion in new money would lead to a total collapse, and she couldn't believe that Geithner, Bernanke and Obama would be crazy enough to risk that.

She's wrong about that. Indeed, some authorities in Washington have confirmed to EIR that if the Fed expands their assets portfolio to $3 trillion total, that break-point will trigger a Weimar hyperinflationary blowout!

1. Tragedy - Lindsey Williams. Warning for the next 2 years !

New from Lindsey Williams: this is the 1st of a 3 DVD series on what will be taking place in the world over the next two years - leading up to the year 2012.

This is a MUST SEE video series! Please make sure watch this video FIRST, before viewing parts 2 and 3.

For more information on how to get this video series and other videos that Pastor Williams has done, please go to www.prophecyclub.com.

 

Gambling Housing Summit At Treasury Is Just One More Weimar Hyperinflationary Swindle

Today's scheduled housing finance summit at the Treasury Department Aug. 17, has already been prediscounted as one more Obama Administration bailout of the too-big-to-fail banks, under the cover of saving American families from home foreclosures. According to a preview of the summit, hosted by Treasury Secretary Tim Geithner, published today in The Hill, Treasury and HUD will put up a total of $3 billion, to be dispersed among the 17 hardest hit states and the District of Columbia, for two-year interest-free loans to homeowners facing foreclosure. The loans, up to $50,000, will go exclusively for mortgage payments. In other words, the money all goes to the banks, which, otherwise, would be foreclosing on homes of unemployed workers and others who can no longer pay, writing down the value of the homes on their books, and facing the burden of managing and selling the properties into a further collapsed housing market.

The bigger unspoken agenda of the meeting is the immediate need to bail out another massive pile of toxic assets held by the too-big-to-fail banks, including mortgage-backed securities and other housing instruments. Whether this mega-bailout will be done through Fannie and Freddie, or directly by the Fed and Treasury, is, for the moment, a well-kept secret. With Obama's political credibility at near zero, there is no possibility of another Congressionally-approved bailout or stimulus. So, by executive fiat, the bankrupt banks are to be bailed out by a new round of Weimar hyperinflation.

According to a source close to the Dallas Fed, the FOMC vote to resume the hyperinflationary operations did not go without strong protests. The fact that Kansas City Fed President Thomas Hoenig gave a widely publicized interview to Huffington Post, decrying the printing press operations, was indicative of a larger opposition. As the result of those protests, the FOMC agreed to restrict the "quantitative easing" to the purchase of long-term Treasury Bonds, rather than the toxic assets of the banks. It was after that compromise that the announcement of the Treasury summit was made, indicating that the real agenda of tomorrow's session is to give Federal government guarantees on the worthless junk on the books of the thoroughly bankrupt major banks.

If this is not cause for the immediate impeachment of Barack Obama, then what is?

The Inevitable Loser is Dumped! Telegraph Punches Obama

by Lyndon H. LaRouche, Jr.

This Monday's London Daily Telegraph piece from correspondent Nile Gardner, is not correct, but Gardner's error is interesting, and timely, nonetheless.^{1Nile Gardner, "The stunning decline of Barack Obama: 10 key reasons why the Obama presidency is in meltdown." Daily Telegraph, Aug. 16, 2020.}

He is right on the spot, in suggesting "The last few weeks have been a nightmare for President Obama, in a summer of discontent in the United States which has deeply unsettled the ruling liberal elites...," but, he is way off the mark in asserting that "the anti-establishment Tea Party movement," a Republican Party front group, "is now a rising and powerful political force to be reckoned with."

For the edification of the Telegraph's staff and readers, the Tea Party factor was a significant participant in the Rosa Luxemburg-style "mass strike" ferment against both the White House and Congress back in August 2009, but has suffered greatly from the citizens' disgust with the Tea Party's showing itself to be a tool of a U.S. Republican Party's current fit of "Republican politics-as-usual" amid the current rash of that Party's preoccupation with inner-party primary-election campaigns. There is nothing in the Republican Party's or Tea Party's posturing which fits the impassioned concerns of the eighty-percentile of the citizenry which is increasingly enraged against the Democratic Party's Congress, and only somewhat less enraged against the Republican Party.

Crucial political realities, not costumed political stunts, is the dominant political force rampant within the body of the citizenry. That should surprise no one who cares to face lurid facts of the situation. As of the latter part of the past week, the global Anglo-American financier interest, as represented by the global pair of Wall Street and the networks of the Inter-Alpha group, has edged into a new phase of the already ongoing, general, global financial-monetarist meltdown-process. As of the present moment, that same Anglo-American interest once led by the combination of the Bank of England's Montagu Norman and its Hitler-leaning partner at Brown Brothers Harriman, is piloting the leading global financier interests of the planet, but, it is precisely the present expression of that pairing of monetarist interests whose system is headed, for the moment, for the sort of global troubles which stuck an isolated Weimar Mark in Spring through Autumn of 1923.

The immediate situation now, during the remainder of August and into September, is the issue whether or not the present lurch into Weimar-1923-style hyper-inflationary spiraling will be continued, or a remedy in the form of a more or less global revival of a "Glass-Steagall," fixed-exchange-rate, FDR-style recovery will be chosen, in time, instead. Meanwhile, the rulers of Wall Street and Inter-Alpha monetarist interests are currently lurching toward an early arrival of a state of affairs comparable to the Venetian monetarists' plunging Fourteenth-century Europe and the Lombard bankers into the notorious, medieval "New Dark Age." No doubt some population-controllers, such as those of the World Wildlife Fund, or the kindred likenesses of the late Bertrand Russell, such as the Cambridge Apostles' offshoot, the "Russellite" International Institute for Applied Systems Analysis (IIASA), will drool at the prospect of reducing the world's population from its currently estimated level, to less than two billions, but their lustful pleasures will be short-lived, as the reality of such a process strikes, and that presently soon, unless a sharp change in direction from current Anglo-American monetarist and related policies are turned around, suddenly, and that soon.

Either way, no triumphant "Tea Party," Alice's or any other, is to be seen on the political horizon for the near future at this time. An entirely different kind of politics, is currently on the agenda of real events.

The Alternative

Although the contested decisions presented to the sundry regions and nations of the planet at this time, can and must be considered in terms of a specifically contemporary history of Europe and the Americas since the U.S. victory in the setting defined by the a world dominated by a specifically geo-political quality of controversies centered within those trans-Atlantic controversies over the 1860-2010 span to date, these controversies must be understood as varieties of conflict rooted in long-ranging maritime controversies centered in the specific strain of monetarist systems of maritime tyrannies centered, historically, in the Mediterreanean, and, later, the Atlantic region, since the decline and fall of the Achaemenid empire.

The modern quality of that process of development has been the expression of the trans-Atlantic maritime system which developed since approximately 1620-1630 in the conflict between the Massachusetts Bay Colony under its sovereign charter, and what emerged since the accession of James II and the House of Hannover to become the imperial power of the British East India Company established by the 1763 Peace of Paris. In other words, the contest between a credit system, as expressed by the Massachusetts colony under its Royal charter and the continuation of a British monetarist system of usury derived from the tradition of Paolo Sarpi.

With the Harry S Truman's accession to the U.S. Presidency, the tradition of monetarist Wall Street and London grabbed what proved to be increasing control over the U.S.A.'s economy and general trend in political outlook. The wrecking of the U.S.A. political-economic system which was accomplished through nearly a decade of ruinously long warfare in Indo-China, led to the elimination of the safeguards of the U.S. economic system in the course of the new, pro-inflationary monetarist policies established during the decade of the 1970s.

The shift of the hegemony in the Atlantic region, to that the London-Wall Street pack over the legacy of President Franklin Roosevelt's reforms, has resulted, over the course of the 1968-2010 interval to date, into the degeneration of the trans-Atlantic economies into a present state which is probably to be estimated as worse than that associated with the effects of the Fourteenth-century catastrophe of the Lombard bankers.

If the situation emerging from the immediate weeks ahead now continues in a direction somewhat comparable to what Nile Gardiner implies in today's publication, then the world is soon on the road to a quality of Hell worse than than of the Fourteenth-century "New Dark Age."

Otherwise, an entirely different set of policy-options, and quite different set of leading political forces, will take over. That leaves Mr. Gardiner with the consolation of being assured that his estimate of the ruined state of President Obama's term in office, is fully as ruinous as Mr. Gardiner has indicated.

LaRouche: Strengthen U.S. Government Securities, Bankrupt the Bastards!

Lyndon LaRouche commented on Saturday that there is a very simple way to deal with PIMCO and other vultures who are planning a speculative killing based on the Federal Reserve's Weimar-style hyperinflation policy. "Enhance the value of government Treasuries, by increasing the stability of their worth. Downgrade the relative worth of the crap that these guys are buying into. Let nature take its course," LaRouche said.

"What you do is strengthen the negotiable value of U.S. government securities, which is generally my policy. Just announce that you are stabilizing the dollar by Glass-Steagall measures. And the nation that doesn't do that, is hoisted by its own petard.

"Being an old-fashioned type of banker in my own spirit and understanding, I would say: 'Welcome, boys. We've got you by the balls!' If I only had the power, I would have more fun! My God, they're such targets! You could really wipe these guys out! If we only had the reins of power, we could have so much fun, bankrupting these bastards!"

Hyperinflationary Policy Pushes Commodity Price Inflation

The price of wheat on international markets has increased 50% in one week, the steepest rate of increase ever, as revealed by former director of the International Food Policy Research Institute Joachim Von Braun. Although there is definitely an organic scarcity of the food needed to meet the real needs of a growing world population, and it is not clear whether the loss of Russian exports is going to be compensated for by the larger harvests in the United States and elsewhere, prices would not have increased so rapidly, had central banks not flooded the financial system with hyperinflationary liquidity.

Speculation in food futures has meanwhile gained a volume 50 times the amount of real food produced and traded worldwide! Thus, for every food item based on wheat, barley, maize, etc., food price inflation of 12-20% to the consumer is expected this autumn and winter. This is occurring in the Chicago Mercantile Exchange, a place where Obama should have some acquaintances.

A report by Merrill Lynch says that investment banks have increased their speculation on cacao, grain, and sugar by one-fifth in recent months. On their side, food cartels have considerably "hedged" their purchase contracts, contributing to the increase of the derivative bubble. Kellogg, for instance, has hedged 90% of a range of commodities. Anheuser-Bush, the world's largest brewer, has hedged its barley purchases through 2011. General Mills says it is "about 50%" hedged.

Acknowledging that animal feed represents two-thirds of the production price for cattle, and cereals represent half of the feed for poultry and pork, meat prices are expected to rise with the rise in cereals prices. Prices for chicken are expected to begin rising by 10-12% as early as September; pork in October by 10%; and beef, later this coming winter, by 8-10%. Biofuels, which use ethanol from wheat and corn, have already risen by 10% since early July.

The Clock Ticks Down to Doom, Unless Obama is Removed Within Mere Weeks

The Fed's Tuesday announcement was a signal of a change of policy, a drastic exacerbation of policy, in the direction Lyndon LaRouche laid out in his Aug. 12 statement, "Please Don't be Silly!" It's much bigger than just the Fed board as such; the London-Wall Street nexus has committed itself to breakneck Weimar hyperinflation over the near term.

Forget euphemisms like "quantitative easing." Why not just call it what it is? It's hyperinflation. Call it Weimar-style hyperinflation, because that's exactly what it is. Any other characterization is wrong and dishonest, because it does not go to the heart of the matter. The heart of the matter: this is Weimar-style hyperinflation. Anything that does not say that is wrong, and probably intentionally misleading. It's doubletalk; it's a fraud; it's a lie; they're lying. When they get into doubletalk like that, it means that they're avoiding the truth. And therefore, what they're doing is, saying, "We've got to lie. Our interests require us to lie; you can't hold us to blame for that."

What we have to do, is not interpret or even detach ourselves from it in any way. What we have to do, is say, what these guys are signalling is hyperinflation. Weimar-style hyperinflation is what the policy of the Fed is now. And we should say that: for all the gobbledygook and babbletalk, the fact of the matter is, the Fed has announced its intention to resort to hyperinflation, Weimar-style.

Now, you have to explain something there. Say, yes, there's been hyperinflation of this type, as in the Japan speculation and so forth. But, in all these cases, it was not the entire system that was coming down. The difference is, when you get to the dollar and pound sterling, when you get a hyperinflation in the pound sterling, or dollar, or both, then you are in a Weimar style collapse of the entire world system. The reason that the Japan hyperinflationary game did not doom the system, is because the Japanese do not run the international monetary system.

One must remember that Wall Street is currently an appendage of the British Inter-Alpha Group. The British Inter-Alpha Group controls an estimated 70% of the entire world monetary activity. And, you have to say that. And say, so therefore, any such deals within the US dollar and the pound sterling, mean exactly a global hyperinflationary collapse in process. We have to say that, not comment and interpret on what others say. We have to intervene not as commentators, which is what our people tend to do, but as the authorities who render decisions on what the bastards are doing. So, we don't interpret what they're doing; we say what they're doing from our standpoint. And, that's the only way to put that stuff, because it's that serious. We have to say it. We cannot temper it; we cannot do anything in that direction. We must say this is a damn lie, and this is hyperinflation. Because it is the U.S. and the sterling system, combined, which are now pretty well integrated. If this system goes down in hyperinflation, the whole planet goes into hyperinflation, and this is hyperinflationary, and it's not comparable to what happened in Japan earlier, for that reason.

Geithner's "Housing Goals" conference scheduled for next Tuesday (see below), may trigger even greater hyperinflation than what the Fed itself is doing. It means another round of swindles on Fannie Mae and Freddie Mac. Fannie Mae is one of the key features of this hyperinflationary process, because they've got such a big investment in it. And you look at the collapse, and the rate of collapse, of the housing system.

We know, or should know, the entire world system is coming down, now. And if we don't get Obama out of the Presidency, that's the end of the United States and many other countries. Just say it! That's the fact. The omission of that statement is, in effect, a lie.