We Need a Great U-Turn!

February 26, 2010 (LPAC)—As Lyndon LaRouche emphasized on Wednesday, there is currently a concatenation of events which must merge to force the impeachment or resignation under threat of impeachment of President Barack Obama within a matter of the next two or three weeks if civilization is to have any chance of surviving. LaRouche's own call for Obama's impeachment is the crucial initiative necessary to bring the growing revolt against Obama's policies to the necessary deliberate conclusion in time.

As LaRouche has said, we need a great U-turn. As long as Obama is still President, nothing will be capable of being done to save this country or civilization.

Yesterday's so-called Health Summit was a case in point. A new CNN poll shows that at most 25 percent of the US population supports the Obama Senate bill. And yet Obama remains completely committed to ramming this fascist bill through using the so-called reconciliation process in the Senate, despite the fact that to do so violates the fundamental Constitutional principle of the mass strike underway in the U.S. today—the principle that all legislation is only legitimate if it receives the consent of the governed.

Nerobama's tyrannical narcissism was completely on display at the televised summit. Despite objections to Obama's T-4 IMAC policy from Rep. Dave Camp (R-Michigan), Obama ended the summit by calling upon the Republicans to embrace the idea of MedPac, "which is basically a panel of doctors and health care experts who would recommend ways to make the delivery system so that we can squeeze out that one-third in Medicare and Medicaid that's wasted." He then threatened to ram through the Senate bill "in a month's time or a few weeks' time or six weeks' time," through reconciliation, if his opponents did not capitulate.

Although before the summit Obama told reporters that he was there to listen, he spoke for 119 minutes, the Democrats for 114 minutes and the Republicans for 110. When asked during the summit why he was not allowing the Republicans to speak, he narcistically said he didn't count his time because he is President.

The Republicans preemptively challenged Obama and the Democratic Congressional leadership at the beginning of the summit to renounce the use of the reconciliation procedure as unconstitutional. Reid defended the option and Obama although attempting to sidestep the issue at first was forced by John McCain to also endorse the procedure. This despite the fact that Lamar Alexander quoted the former Senator Obama as having argued against it as contrary to the intention of the founding fathers. At the time Obama had said: "What we worry about is essentially having two chambers, the House and the Senate, who are simply majoritarian. Absolute power on either side. Thats just not what the founders intended."

In 2005, when the Bush administration attempted to do this exact same thing in order to ram through the confirmation of judicial appointments, Lyndon LaRouche wrote: "The immediate target of this attempted illegal coup d'etat is the institution of the U.S. Senate. The purpose is to overturn the U.S. Constitution, in favor of White House dictatorship, by breaking the Constitutional powers built into the Senate's power to impose checks and balances against an out-of-control Presidency or temporary errant majority of the House of Representatives. This provision to defend our Constitution was centered in the powers of advice and consent which the Constitution assigned specifically to the U.S. Senate." The same can be said of the Obama administration today.

A revolt against Obama's unconstitutional policies is now breaking out on several fronts simultaneously.

* On Obama's fascist deathcare bill, Rep. Stupak said on Monday that 15-20 House Democrats oppose the Senate bill supported by Obama. Rep. Eric Cantor released a memo on Wed. predicting that the Senate bill if passed through reconciliation would fall 14 votes short of passing in the House.

* At a hearing of the full House Science and Technology Committee on the Administration's NASA FY11 budget request there was near unanimous opposition to the Obama policy of shutting down manned space exploration from both sides of the aisle. This comes after many congressmen have accused the administration of breaking the law by shutting down the program without Congressional approval.

* At a meeting in Washington, D.C. of the U.S. Institute of Peace on Haiti: Six weeks later, after an intervention by a LYM member outlining Lyndon LaRouche's call to take action to evacuate Haitians from the earthquake zone and flood plane to higher ground, a proposal rejected by the Obama administration, even a panelist from the AEI afterwards said that he agreed 100% with the proposal.

* The Senate $15 billion jobs bill does not have the votes in the House, according to Rep. Oberstar chairman of the House Transporation and Infrastructure Committee, because the bill gives almost all the extra federal highway funds to four states and 22 states don't get a penny. This continues the pattern of Obama violating the General Welfare clause by providing funds to some states but not others.

* Obama did the same thing when he campaigned for Harry Reid in Nevada last Friday. $1.5 of TARP funds were rerouted to mortgage assistance using criteria which ensure that the funds only went to Nevada and four other states. Rep. Kucinich and Rep. LaTourette are circulating a letter to protest this obvious political payment to Nevada, on behalf of Reid, to the exclusion of those effected by the foreclosure crisis throughout the nation, including Ohio.

On every front in the US, Obama is drawing opposition for his British-controlled policies, which are designed to destroy the U.S. and prevent it from working with the Russians, Chinese, and Indians to defeat the same British empire whose policies are ultimately responsible for the genocide which will occur in Haiti unless urgent action is taken as proposed by Lyndon LaRouche.

The situation is on a very short political fuse. Many will get caught up in the predicates and balk at the necessary action. Our job is to kick against the pricks of pragmatism and provide the necessary leadership. Impeach Obama now!

LaRouche: The Only Option is Obama's Removal From Office

February 24, 2010 (LPAC)—Lyndon LaRouche today made some very pointed comments about the strategic situation, including the Haitian crisis. His essential message: We must get rid of Obama now! He must be forced into early retirement—very quickly. It is because of Obama that the United States is wallowing in excuses, as to why it is not possible to undertake the emergency evacuation of over a million of Haitians who are otherwise facing devastation in just a matter of weeks. It is no excuse that the Army Corps of Engineers has been gutted. You don't wait for some future opportunity to rebuild the Corps. You rebuild by doing the Haiti mission. Massive action is required, and Obama is the biggest single obstacle to that kind of action.

LaRouche elaborated: It is not difficult to make Obama quit. Play on his psychology. If you have enough serious patriots around, you can force him to leave. The bottom line is: There are no "easy" alternatives. There are no other options. The problem is President Obama. Haiti's people are facing Hell on Earth, and there is no chance of improving their prospects for survival, so long as Obama is in office.

The question to be posed, publicly, is: How many Haitians are going to have to die before it becomes obvious that Obama must be either impeached or forced to resign, under threat of impeachment? Until you get that dramatic shift, at the top, in the United States, there is no chance to save Haiti—or anyone else, for that matter. Make this a public issue. It will resonate with the population, which is already disgusted with Obama, after just a little over a year in office.

The other big problem with which we are dealing is the British Crown, which is very much tied to the Obama problem. In the same way that the Obama problem is a problem of the British Crown, the same is true in Russia, where you have Kudrin, who is part of the British oligarchical system. More than Kudrin, you have Gorbachov, who is a really nasty, hardcore British agent. We know the Gorbachov case, directly, from the Strategic Defense Initiative. Today, still, the seminal issue for Russia is the SDI issue, and nothing else. Putin's own greatest blunder was in downgrading the role of the Russian Academy of Science. Yes, there were problems there, including a great deal of wasted effort. But rather than cleaning up those secondary problems, Putin effectively abandoned the Academy.

LaRouche also warned that the Obama problem has a great impact inside Russia. Russia won't operate until Obama is gone.

Everywhere you look, from continental Europe to Brazil, where the country is being looted through the carry trade swindle, the British are desperately grabbing any resources they can get their hands on. The system is dead, beyond any prospect of repair. The British are delusional. What they stubbornly refuse to face is the fact that, in an existential crisis, people blow their stacks and don't act rationally. If they think they can "manage" the consequences of their carry trade looting, whether in Greece, or Brazil, or Spain, or Ireland, they are sorely mistaken.

So the key is: Obama must go now. If Obama stays in office because some people want to compromise, the world is gone. We plunge into a new dark age or worse. There is no room to play games. It's ipeachment or forced resignation, under threat of impeachment. Nothing else works.

Pearl Harbor has already struck, buddy! You can no longer wait around for a better option.

It's the Banks, Stupid

February 24, 2010 (LPAC)—As has always been clear, the so-called sovereign debt crisis is, in reality, about the bankruptcy of the Anglo-Dutch banking system. City of London mouthpiece Ambrose Evans-Pritchard reports in today's Daily Telegraph that European banks need to roll over EU1.1 trillion of debt over the next two years, at higher cost and in direct competition with sovereign states. EU560 billion matures in 2010 and EU540 billion in 2011. None of this includes the billions they have in derivatives and other luftgeld. At the same time, the countries of the European Union have to raise EU1.6 trillion this year to roll over their sovereign debt.

Evans-Pritchard quotes Graham Secker, of Morgan Stanley: "The scale of such issuance could raise a significant crowding out issue, whereby government bonds suck up the vast majority of capital. The debt burden that prompted the financial crisis has not fallen; rather, we are witnessing a dramatic transfer of private sector debt on the public sector. The most important macro-theme for the next few years will be how easily countries can service and pay down these deficits. Greece may well prove to be a taste of things to come."

Evans-Pritchard also reported that Germany's BaFin has warned that EU522 billion of German bank exposure to state bonds in Portugal, Italy, Ireland, Greece, and Spain may become systemic risk if contagion spreads. He writes that this might explain why "Berlin is warming for a EU25 billion rescue for Greece."

Britain's "Destroy Haiti" Policy: The Case of Paul Collier

February 24, 2010 (LPAC)—Fresh from a trip to China, Schiller Institute founder and chairwoman Helga Zepp-LaRouche opened the Fourth Nigerian Economic Summit in Abuja on Nov. 12, 1997, outlining a perspective for developing the continent of Africa by building transcontinental railroads, nuclear power plants, and new cities, as part of "a new era of mankind" in which "infrastructure corridors will bring industrial and agricultural development into land-locked regions." Furious, the next speaker departed from his prepared remarks to sputter that the audience must beware "charlatans who are peddling prosperity."

That speaker was Paul Collier, the Oxford University professor who drafted the strategy for "rebuilding" Haiti which George Soros, Bill Gates, et.al. are attempting to impose upon Haiti today. Collier is unabashed: the goal is to use small and broken Haiti as a showcase for how to establish of a modern version of the old British East India Company empire, where vultures such as Soros, Gates, et.al, rule directly, eliminating national governments and sovereignty altogether. After Haiti, comes Africa.

Before and after the earthquake alike, Collier proposes that Haiti's future is as an export sweatshop, which, if powered by "second-hand [sic!] electrical equipment," and if its few labor regulations be repealed, can be competitive with the poorest Chinese labor. Any infrastructure as might be required for export (roads, not rail) shall be built only by labor-intensive means. The rest of the country can rot, since "large tracts of Haiti are mountainous and providing infrastructure to the scattered populations in these areas would create an unsustainable maintenance burden and not be economic," he specifies. NGO's, not the State, shall provide services, under a proposed "Independent Service Authority," operating "somewhat analogous to an independent central bank," so as "to tap into new sources of major funding ... such as the Gates Foundation;" ports and electricity should be privatized, customs services outsourced.

This "charlatan pushing British imperialism," is director of Oxford's Centre for the Study of African Economies, a Commander of the British Empire (awarded on the Queen's Birthday in 2008), senior advisor to Tony Blair's Commission on Africa, and a hired hand of British imperialist (and drug pusher) George Soros.

Collier outlined these policies in the program of action for Haiti he submitted to UN Secretary General Ban Ki Moon in January 2009, under the title "Haiti: From Natural Catastrophe to Economic Security, A Report for the Secretary-General of the United Nations." Since the earthquake, he's promoted this plan in several articles authored with Jean-Louis Warnholz, co-founder of Fastafrica, a venture capital/intelligence company profiting off the looting of Africa.

These are not merely "proposals." Soros's Open Society Institute director of Haitian reconstruction, former Haitian Prime Minister Michele Pierre-Louis, argued against modern industrial equipment being sent into Haiti to help remove the rubble, in a January 25 article in Huffington Post. "We should press forward with cash-for-work programs, to pay people to pick up garbage. Instead of shipping in big rock cutters, we can use international aid to pay Haitians to break up debris with sledge hammers," Pierre-Louis wrote. Two days later, Time magazine published a call for Pierre-Louis (the only Haitian invited to World Economic Forum discussions of funding Haiti at this year's Davos meeting) to be made President of Haiti.

Asked by one company to fund a government project after the earthquake, Bill Gates responded that no money would go into the government; it was "too corrupt," a source told EIR yesterday.

Another Rothschild-allied Bank on the Ropes

February 24, 2010 (LPAC)—Germany's second-largest bank, Commerzbank, which is a member of the Rothschild-dominated Inter-Alpha group, whose bankruptcy has been recently exposed by Lyndon LaRouche and his EIR magazine, has announced that it lost 4.54 billion euro in 2009—despite receiving huge public bailouts beginning in 2008. Commerzbank is currently 25% state-owned.

In the middle of 2008, Commerzbank took over Dresdner Bank, a daughter of the giant Allianz insurance company, which also owns Pimco, the world's largest bond-trading fund. Dresdner had huge amounts of rotten paper on its books, which Allianz conveniently got rid of in the process—although Allianz still holds 15% of Commerzbank.

Recall that Allianz's Pimco last week joined Rothschild interests and London-run Banco Santander in continuing to promote the Brazil carry trade, just as they had done in 2002 during the presidential elections which made Lula da Silva head of state.

As LaRouche has pointed out, the entire London-run European monetary system is bankrupt, and is being propped up by the equally bankrupt Brazilian carry trade.

A Great Brittany to Outflank Great Britain’s Grip on a Collapsing Europe

February 23, 2010 (LPAC)— As the euro-system is dying, the French LaRouche association Solidarité & Progrès (S&P) party led by Jacques Cheminade is delivering a strategic blow onto British monetarist factions intent of imposing a Versailles-like collective suicide upon destroyed nations of Europe. On February 12th, after two months of intense campaigning by French LaRouche Youth Movement (LYM) in the western region of Brittany, S&P officially filed a 91 candidates slate for the March 14th regional election. As certified slates were released to the press on February 15th by election commission, we were immediately flooded by calls from astonished Medias. During a press conference by our 4 LYM heads of slate, attended by local and regional main TV’s and daily newspapers, we set the record straight: the economic crash we are living into is without end or limits, if we don’t go back to a physically integrated agro-industrial system operating under a sovereign credit system.

This local election is not a local event since we are not living under “normal times”. Our program for Brittany is stating the principled remedy by provoking citizens and officials to think forward, think toward the future on at least a 20 to 30 years approach. Once a strong agro-industrial region, developed in the post-war period by de Gaulle’s science and technology planification policy, Brittany is now returning to backwardness caused by financial predation and insane green policies. A new “Breton miracle” must be based on high energy flux density power through the construction of a small HTR-PBMR 4th generation nuclear reactor, even more so since electricity production is a pressing issue: Brittany is only producing 8% of its electricity and cuts were implemented this winter because of shortages. The region should also be integrated to Europe and Eurasia through a high speed new generation of train connected to the Kiev Lisbon and Northern Europe transportation corridors. Building this will provide true productive work for the 20,000 experienced workers from the dying automobile industry located in the region. Farming, the main production sector of Brittany, must be enabled to change from a rentability-only and short-term chemical agriculture to a Vernadskyan based agrobiochemical mode of production. That is also requiring to secure fair prices for farmers. This whole policy is forcing through the issue: no future is possible without fighting for systemic change on the world level giving back money creation power to each nation-state.

On the ground, activists from all over Brittany, joined by teams of volunteers from the whole nation, are pursuing the two months effort by spreading even more to middle sized cities and villages, going door to door and deploying to market places. This comes on top of a two years campaign in the region where S&P distributed 500,000 leaflets, including 200,000 last November and December. Now we are deploying with 20,000 extras, 1,500 posters and 100,000 candidates statement distributed along with voting ballots. Our network of supporters is mobilizing increasingly to feed the effort that allows us to print 2.5 millions pieces of this statement that are to be mailed to voters by authorities. Citizens met are quite receptive and, may it be a signal of change, don’t hesitate to open their wallet to support the campaign. The mobilization is also intensifying among supporters and citizens who stepped-up the challenge of being candidates. Change never came through without men and women risking their honor…and fortune!

Readers are warmly urged to implement this social principle to support and endorse the genuine campaigns of our Büso’s friends in Germany’s North-Rhine Westphalia regional election and LPAC’s USA congressional primaries. Whatever if these campaigns may look as if mere dots on a worldwide map! These are point of change…

Haiti Is No Natural Disaster

by Carlos Wesley

In October 1989, the U.S. city of San Francisco and its surroundings were slammed by an earthquake measuring a magnitude of 7 on the Richter scale. The quake left 63 dead, more than 3,000 wounded, and as many as 12,000 homeless.

Compare this with what happened in Haiti last January 12, when an earthquake of similar magnitude hit that Caribbean island-nation: a quarter of a million dead, the destruction of virtually every building in the capital city of Port-au-Prince, and in a large part of the country, and some 2 million people left without shelter or food.

Clearly, what caused the destruction of Haiti was not the earthquake, but the lack of infrastructure and a solid foundation.

A real reconstruction program

There are two alternatives facing Haiti. One is that proposed by economist Lyndon LaRouche, who on Jan. 30 told a webcast that the U.S. government should sign a treaty with Haiti which, while fully respecting its sovereignty, would rebuild its economy in a manner which would allow it to go forward as a viable nation. "This is a small nation of people which has been subjected to a terrible history, which has been promised and betrayed, promised and betrayed. Never delivered."

Rebuilding Haiti would take a quarter century, at least, said LaRouche. "Many things have to be changed, but the most important thing is the prevailing attitude called fix-it, or patch-it." The U.S. should tell the Haitians, "Okay, you're a small country. We can absorb the burden. We are going to work with you to make sure that you come out of this successfully, as a country that can maintain itself, and survive," he said.

Days earlier, LaRouche had said that the U.S. "has a moral responsibility to respond to this crisis." Further, such assistance would give the United States the added benefit of developing "an improved capacity to address other crises, both abroad" as well as at home in cases like that of Hurricane Katrina. Such an aid program would also give useful jobs to many U.S. youth, who "could function as a complementary labor force to be trained" for emergency situations, and could be the basis for a new Civil Conservation Corps."

A Historical Account

What led Haiti to a state of misery, even before the earthquake hit, was the imposition of increasingly more lethal policies, culminating with globalization, which made Haiti the poorest country in America. Haiti has been the victim of these policies virtually from the moment it won its independence on January 1, 1804—the first country in America to do so, after the United States-and proclaimed itself the first modern republic ruled by blacks. This was achieved after the only successful rebellion of slaves in all of history was carried out under the leadership of Toussaint L'Ouverture, and the three great powers in the region—Spain, England and Napoleon's France—were dealt military defeats.

Haiti was never forgiven for this, nor were Haitians forgiven for their decisive support for the American Revolution, nor for their alliance with the best forefathers of the U.S., especially Alexander Hamilton, nor for the fact that their own war of independence made it possible for the United States to obtain Louisiana, doubling its territory in one blow. Nor for the fact that it was thanks to material support provided by Haitians that Simon Bolivar was able to return to the battle for independence of the countries of what was then known as Greater Colombia, after suffering two previous defeats.

Haiti was punished with blockades and quarantines, not only by the imperial powers, but by the ungrateful Bolivarian countries and by the United States itself.

This changed when Abraham Lincoln took over the U.S. presidency in the 1860s, when the U.S. finally extended diplomatic recognition to Haiti, and continued a few years later with the naming of U.S. leader Frederick Douglass as plenipotentiary to that country.

At the end of the 19th century, Haiti was a country which, if not prospering, at least was self-sufficient, and which enjoyed the respect of the concert of nations.

Unfortunately, the negative side of U.S.-Haitian relations resurfaced under racist President Woodrow Wilson, who invaded the country on behalf of Wall Street and City of London interests in 1915, seizing control of customs and launching an occupation, at times brutal, which lasted until 1934, during which hordes of anthropologists arrived to brainwash Haitians into believing that voodoo was their true religion.

But that was not the only problem the Haitians faced. In the Dominican Republic, which shared the island of Hispanola with Haiti, another dictator ruled—Rafael Trujillo. Trujillo, installed through a U.S. occupation, carried out "ethnic cleansing" in 1937 along the border between the two countries, massacring tens of thousands of Haitians.

The U.S. occupation ended when Franklin Delano Roosevelt took over the U.S. presidency. Roosevelt, who was the first U.S. president to ever visit Haiti, launched a "Good Neighbor" era which helped Haiti retake the path toward prosperity.

But upon his death, things worsened once again. With the support of certain factions inside the U.S., Francois Duvalier, a doctor recruited by those same anthropologists and ethnologists and sent to the U.S. for training, imposed a fierce dictatorship, and ruled as the High Priest of Voodoo. At his death, his son Jean-Claude Duvalier succeeded him.

Despite this, Haiti continued to be self-sufficient, at least as far as the production of rice, the main staple of the population. But with the fall of Duvalier, the IMF arrived and, in exchange for a small loan of $24.6 million that the country desperately needed to survive the depredations of Duvalier, forced Haiti to lower its protectionist tariffs on rice and other foodstuff. The result was that Haiti was inundated with rice from the U.S., which bankrupted local producers, according to lawyer and scholar Bill Quigly.

In 1991, the former priest Jean-Bertrand Aristide took over the Haitian presidency, but was overthrown by the military because of his own lunacy. This served as the pretext for George Bush, Sr. to impose another international embargo against the Haitian people, who were forced to eat even the seeds and bushes of certain exotic plants slated for export, just to avoid starving to death.

The embargo ended when the U.S. once again invaded Haiti in 1994, this time without firing a shot, under Bill Clinton. The bayonets of the U.S. and its allies not only brought Aristide back, but also the demand to privatize everything: electricity, water, the airport, the ports, and even education. And of course, economic sanctions were once again imposed which pauperized the already impoverished Haitian population.

Aristide opposed this, leading—among other things—to a decision by the U.S. government, this time under Bush, Jr. to overthrow him a second time, in 2004. Added to this, the U.S. Coast Guard has maintained a blockade for years to prevent Haitians from fleeing to U.S. refuge.

The Genocidal Alternative

The alternative to LaRouche's plan is the genocidal proposal of British "economist" Paul Collier, who has the support of financier and drug legalizer George Soros. Collier explicitly opposes the development of infrastructure in Haiti, and proposes instead "arranging" for Haiti to be turned into a free-trade manufacturing emporium for the controlled export of the multinationals, using Haitian labor even cheaper than that available in the U.S. In other words, reimposing slavery!

In fact, except for a visit from U.S. Secretary of State Hillary Clinton during the latest crisis in Haiti, the Haitian government has been virtually bypassed by international donors. And, shamelessly, Collier is now in charge of elaborating the United Nation's so-called recovery plans for Haiti.

Where Did All the Bailout Money Go?

February 22, 2010 (LPAC)—Where did all the bailout money go? That is the question raised by the London Telegraph in a February 19 article, which claims that the Bank of England and the British government spent well over one trillion pounds (or $1.6 trillion) saving the British financial system. It asks, what did we get for our money? The economy remains at "dangerously low levels," and bank lending continues to contract—just as it does in the U.S. The Telegraph, being a proper British propaganda sheet, never really answers the question, so we will.

The first thing to understand is that the Bank of England does not make a habit of falling into the traps it sets for others, like the Federal Reserve and the European Central Bank. The British announced all sorts of grandiose bailout plans, mainly as a way of luring the Fed and the ECB into spending enormous sums to bail out the British-dominated global monetary system. The Fed and the U.S. Treasury did exactly as the British ordered, launching a nation-killing financial rip-off under the guise of bailing out the banks, while the ECB raped the governments and population of the financial dictatorship known as the European Union. The U.S. tossed in a staggering sum, estimated at $24 trillion by TARP Special Inspector General Neil Barofsky, while the ECB also kicked in trillions of euros of bailout funds. Meanwhile, the sharpies at the Bank of England laughed at the gullibility of their stooges, and did relatively little themselves.

However, the question of how much money and where it went is also something of a fraud, as the perfidious Brits know well. Much of the money never really existed, being just computer entries into the accounts of the banks at their respective central banks, as a way of allowing the banks to pretend solvency. Another huge chunk was not cash up front, but took the form of government guarantees of financial paper of various sorts, under the dubious rationale that the markets would recover and the guarantees would quietly expire, without cost. The complaints about bank loans are a scam, since the purpose of the bailout was to plug the prodigious holes in the balance sheets of the banks, without letting that money out into the general economy, in the foolish belief that in doing so, hyperinflation could be avoided. The banks were never supposed to make loans with that money—as a matter of policy.

However, the U.S. government has also become the lender of last resort in the real estate markets, either making or guaranteeing nearly every mortgage now issued. Fannie Mae and Freddie Mac face enormous losses down the road, and will pass those losses directly to the taxpayer, and the same holds true for Ginnie Mae and the FHA. Plans are also afoot to try to bail out the commercial real estate market. It's a bottomless pit.

The devastation these criminal policies will cause cannot be fully measured in terms of dollars. How do you put a dollar value on the destruction of a nation, the destruction of its population, and the destruction of its future potential? The monetary cost is the least of it.

LaRouche: Bankrupcy Not Bailout ! "They Will Kill You !

THE TRIPLE CURVE

Largest Bond Dealer Plans to Keep Betting on the Brazil Carry Trade

February 22, 2010 (LPAC)—Pacific Investment Management Co. (PIMCO), the world's biggest bond fund, which is run by the giant German insurance firm Allianz, announced that it plans to continue playing the Brazil carry trade, despite the fact that the country is facing presidential elections in October 2010. It is confident that the winner of the elections, whether President Lula's choice Dilma Rousseff or Sao Paulo Governor Jose Serra, will allow the speculative looting to continue. "We have every comfort that the policy in Brazil will remain sound," PIMCO's co-head for emerging markets, Michael Gomez, told Bloomberg on Feb. 17. "It doesn't really matter who the president is in the next election, as long as the policy is taken care of. We are fans of local debt markets in Brazil... Brazilian bonds are a great value."

PIMCO had joined London-run Santander Bank and Rothschild agent Mario Garnero in betting heavily on candidate Lula da Silva and Brazil during the 2002 presidential election—and won big.

As EIR reports in an article entitled "London's Brazil Carry Trade: Smoke, Mirrors—and Genocide," to be published in the upcoming issue of the magazine:

"In recent years, international banks, such as London-run Santander, have borrowed hundreds of billions of dollars from the European Central Bank at a 1% interest rate, or from the U.S. Federal Reserve at similarly low rates. They then 'carry' these funds to places like Brazil, where they are placed in government treasury bills denominated in reals (the local currency), yielding the highest interest rates in the world: an average of 16% per year, over the seven years that Luiz Inacio Lula da Silva has been President of Brazil (2003-present). As a result, the total interest paid out by Brazil during the decade since 2000, to foreign and domestic bondholders, was a staggering 1.564 trillion reals ($870 billion at today's exchange rate)—almost three times the original debt of 563 billion reals in 2000.

"How in the world did Brazil keep making these payments? In large part, by bringing in more capital to invest in more bonds, thus going further in debt—the classic Ponzi scheme. As a result, Brazil's public debt rose from 563 billion reals in 2000, to 1.345 trillion reals in 2009—782 billion reals in new debt. In effect, these new loans covered exactly half of the 1.564 trillion in interest payments made. The other half came out of the hides of Brazilians (population, 190 million), whose domestic consumption was drastically reduced in order to export goods to earn foreign exchange with which to pay the debt.

"How has Brazil continued to attract such volumes of foreign capital? In part, by offering exorbitant interest rates. But also by ensuring the appreciation, or revaluation, of the real vis-‡-vis the dollar, which ensures foreign speculators an additional margin on this account. In fact, the real has appreciated in value every single year of the Lula Presidency, with the exception of 2008, when the global financial meltdown struck the planet. As a result, the actual average return on the foreign carry trade under Lula, has been a breathtaking 24% per year. On his seven-year watch on behalf of London, the equivalent of 859 billion dollars (or some $123 billion per year) have been looted from the Brazilian economy and people.

"But as with all Ponzi schemes, the instant the escalating flows stop, the whole house of cards comes crashing down, and the magician's illusion is shown to be nothing but smoke and mirrors—and genocide."

Buffett's Partner: 'It's Over' for U.S. Economy

By: Dan Weil

Charlie Munger, Warren Buffett’s longtime business partner in Berkshire Hathaway, warns in a new column that the U.S. economic empire is crumbling before our eyes, thanks to federal debt and poor planning.

In an article penned for Slate.com, Munger uses the form of a parable to explain how Wall Street’s love affair with gambling has destroyed America’s Main Street.

The article leads with this headline: “Basically, It’s Over.”

The Berkshire Hathaway vice chairman describes the economic history of Basicland, which happens to match U.S. history.

Early in its history, debt is unknown except for home mortgages and some consumer loans, and people live within their means. Speculation is discouraged, and commodities markets are small and tightly regulated.

Under this rational system, economic growth skips merrily along at a steady 3 percent, Munger explains.

Taxes are limited and pay for only “essential services” like fire protection, courts, and defense. Most taxes are collected on imports, and government spending matches that tax income. Debt via government bonds is limited.

Then things take a turn for the worse.

“The extreme prosperity of Basicland had created a peculiar outcome: As their affluence and leisure time grew, Basicland's citizens more and more whiled away their time in the excitement of casino gambling,” Munger writes.

Financial services soon grow to account for too big a portion of the economy, Munger says.

“The winnings of the casinos eventually amounted to 25 percent of Basicland's GDP, while 22 percent of all employee earnings in Basicland were paid to persons employed by the casinos, many of whom were engineers needed elsewhere.”

Then, a shock: Imported energy costs rise, and low-cost labor competition from abroad appears, Munger writes.

“Suddenly Basicland had to come up with 30 percent of its GDP every year, in foreign currency, to pay its creditors,” Munger writes.

The U.S. deficit — just the gap between spending and income in one year — is projected to hit $1.6 trillion in 2010. Total debt is project to exceed 100 percent of GDP starting in 2011.

In the parable, Munger strongly suggests that the United States take seriously the campaign of Reagan-era Fed Chairman Paul Volcker, who wants the big banks to cease pretending to be banks if they expect the freedom to trade securities on the side.

“He suggested that Basicland should strongly discourage casino gambling, partly through a complete ban on the trading in financial derivatives, and it should encourage former casino employees — and former casino patrons — to produce and sell items that foreigners were willing to buy,” Munger writes.

As the parable ends, none of the politicians listen, and Basicland turned into “Sorrowland,” Munger concludes