`What the Bastards Are Doing Now: Hyperinflation'

Following the Federal Reserve's Aug. 10 meeting, the importance of a long interview appearing Aug. 13 with the Fed's lone dissenting vote, Kansas City chairman Thomas Hoenig, was bluntly identified by economist Lyndon LaRouche: "The Federal Reserve has announced its intention to resort to hyperinflation, Weimar-style!"

LaRouche denounced economists' and analysts' resort to meaningless phrases like "quantitative easing 2" to refer to the Fed's policy. "It's double-talk, fraud, lying b___sh__. They use these nonsense terms to promote hyperinflation and then they'll say, 'We were lying; we've got to lie, the situation is so desperate.' Hyperinflation is what the bastards are doing now. Call it by its name, Weimar-style hyperinflation."

Hoenig, in an interview with Huffington Post in which he called the Fed's policy "a dangerous gamble with inflation," said that the Fed was essentially guaranteeing Wall Street's profits and discouraging credit for investment, by lending the banks unlimited amounts of free, printed money which they could lend back to either Treasury or the Fed at interest; AND, that the Fed is guaranteeing new speculative bubbles by making it impossible for investors to earn any private return except by highly "derivative" speculations.

The same posting of Huffington Post reprinted sections of the latest Risk Analytics newsletter by economist Christopher Whalen. Whalen describes how the Wall Street banks, with Federal Reserve aid, "are busily creating the next investment bubble on Wall Street — this time focused on structured assets [derivatives — ed.] based upon corporate debt, Treasury bonds, or nothing at all — that is, pure derivatives. Like the subprime deals, ... these transactions are being sold to all manner of investors, both institutional and retail. Like the subprime debt .... these securities are completely illiquid and come with only minimal disclosure."

LaRouche elevates and sharpens the point. "This is hyperinflation — Weimar style. Don't compare the Fed's policy to Japan Central Bank policy in the 1990s. Japan did not control the world financial/monetary system. The difference now, is that hyperinflation of the dollar or of the pound sterling means the Weimar-style collapse of the entire monetary system. Wall Street is essentially an appendage of British Inter-Alpha Group banking, which controls 70% of world financial activity. This is not like Japan.

"The whole planet goes into hyperinflation, if Obama stays in office. Get Obama out, or it's the end of the United States and many other nations," LaRouche concluded.