Complete Denial of Reality: The Same Thing as in Weimar, 1923

April 30, 2010 (LPAC)—The Quixotic emergency drive for a "bailout" of Greece's creditors, launched from London, has triggered a disintegration of the Euro system as a whole, and is threatening a panic collapse of Europe's banks. As German Chancellor Merkel and others have redoubled their efforts to force through the bailout, its costs have tripled from $40 to $120 billion Euros; but right behind that, there is the $1.3 trillion Euro exposure to Greece, Portugal and Spain together,— especially Spain, and especially Britain's exposure to Santander's Spain.

The interest rates on Greek debt have been soaring hour-by-hour, reaching 35% at one point on Wednesday. But even at those rates, Greek debt is not being bought; rather, it is being dumped wholesale on the markets.

As European leaders were being swept about helplessly by waves of panic and despair yesterday, Lyndon LaRouche said, "I don't think they have anywhere near an intelligent response to the situation. They refuse to admit its character; there is no such thing as a safe bailout. They've already screwed things up. What there is, is take down the effort of the bailout: forget it! It's not going to work; it's not possible at this time. And only people with delusions can think that there is something possible. It's hopeless, not for every country, but it's a hopeless case for the Euro system. The Euro system is essentially finished. And that's what we should say: the Euro system, in principle, is finished now. You can save the individual nations, or at least some of the nations, but this whole idea of bailing out Greece was lunacy. There was no reason to start that countdown. All you have to do is suspend everything; put it under protection. Most of the debt should be cancelled; maybe a large part of that debt is fake. How much of the debt is fake? We haven't been told! Therefore, you should put it through bankruptcy reorganization, searching for and eliminating all debt obligations which are not justified."

The key is that doomsday has ALREADY arrived. The world financial system has already crashed, and events now in Europe are just proving that to be the case. With the fall of the Soviet Union, the doomsday process began. Now, today, doomsday has arrived. We are seeing a 1923 Weimar crash on a global scale. The crash has occurred. Look at history, including the Weimar crash of 1923. The first phase of that crash was denial. The whole thing was based on denial; on the hope that some miracle is going to bail everything out. Once all the assumptions based on that denial failed, only then was there recognition that something drastic had to be done. In the Weimar case, it was a contained situation, but today the crash is global. The crash of the world system is a fait accompli, and the European events are just playing out with a desperate denial for the moment. It's the same kind of thing as Weimar: it's a denial of reality, because they're afraid to face reality.

It points up the extent of our responsibility. "We have to be the strong people," LaRouche said. "There are no others available."