Downward Plunges the Unabated Disintegration of British Monetarist System

May 15, 2010 (LPAC)—The disintegration of the global British monetarist system continues unabated by the $1-trillion-plus Brutish hyperinflationary bailout announced just six days ago, taking the Euro and the world banking and bond systems down with it. "This is only a mild beginning," compared to what is coming in the next weeks if the United States does not crush the empire by passing Glass-Steagall, the world's most accurate forecaster, Lyndon LaRouche, commented.

The Euro hit new lows on Friday, falling to its levels during the Lehman Brothers collapse (under $1.24), accompanied by trepidatious talk that the Euro might soon disappear.

The international banking system continues frozen, as both the London Libor interbank lending rate, and bets on whether banks will default on those loans (politely called the Libor-OIS rate), rose every day this week, after their brief "morning after" reprieve on Monday.

Stocks fell across the world on Friday, with European bank stocks taking the worst hit. London's Spanish fronts, Banco Santander and BBVA, fell by 7.4% and 6.1%, respectively. "It couldn't happen to a worse people," as LaRouche remarked.

Leaders of Europe and the IMF are wrecklessly plunging ahead with schemes to save the British system through fascism, which won't work. IMF spokesmen today released the Fund's review of the fiscal situation in the industrial countries, demanding that Europe and the United States impose sizeable and unprecedented budget cutting across the board. Carlo Cottarelli, head of the IMF's Fiscal Affairs Office, endorsed the drastic wage- and budget-cutting programs announced by Spain and Portugal this week as important steps in the right direction, but not the final word. Since no government can implement the levels of austerity entailed, the European Union is preparing to grab direct control over the national budgets of Europe at its May 20 EU Ministers meeting.