PRESS RELEASE
It's Time to Bury the Media Lies:
LaRouche uniquely saw this crisis coming
Jan. 20 (EIRNS)—The ability of the world's governments to escape the disaster of the ongoing world economic breakdown crisis, depends upon exposing the lie that "no one could have seen this crisis coming," said Helga Zepp-LaRouche, founder of the Schiller Institute on Jan. 19. She urged an international campaign to bury this deliberate falsehood once and for all, and document the fact that U.S. economist Lyndon LaRouche not only forecast the disaster, but prescribed the solution.
Zepp-LaRouche was responding in particular to an article in the Jan. 19, 2009 edition of the German financial daily Handelsblatt, headlined "Why Did No One See the Crisis Coming?" The article cited a study by four economists from the U.S. Federal Reserve which allegedly determined that the banks, the rating agencies, and everybody were caught completely flat-footed by the crisis, and thus it must be attributable to psychological factors.
In fact, as every leading financial media outlet, significant economist, and major government financial authority knows, Lyndon LaRouche has been forecasting at least since 1994 that, unless the world's leading governments, especially the United States, broke from the monetarist and post-industrial insanity that has increasingly dominated the globalized world financial system, the system—and subsequently the world economy— would disintegrate. (See "The Coming Disintegration of Financial Markets," EIR June 24, 1994.)
Actually, it was a year earlier, in March 1993, that LaRouche first pinpointed the cancer of financial derivatives as the element that might destroy the world financial system and economy. At that time, LaRouche proposed a one-tenth of one percent tax on derivatives transactions, as a way of drying up the trade. (See "Tax Derivatives Speculation," a New Federalist pamphlet, July 1993)
LaRouche's subsequent warnings about the disastrous consequences which loomed if the U.S. financial authorities, in particular, did not change their speculative ways, are too numerous to detail, but it is useful to mention a few:
- In an EIR article, published on January 9, 1998, and entitled "Truthful, or merely 'factual'," LaRouche reviewed his successful history of forecasts, and issued the following warning:
- If governments and other relevant institutions continue to act on behalf of those same mind-sets which have characterized our publication's deprecators and opponent during recent decades, those governments, those nations, this global civilization, were doomed to plunge, very soon, into a planet-wide 'new dark age,' a dismal period of future history as prefigured by the famous 'New Dark Age' coinciding with the general financial and moentary collapse of Europe's mid-fourteenth Century."
- In the fall of 2005, LaRouche put out a sharp warning on the threat of hyperinflationary collapse, which he identified as the lawful outcome of Fed Chairman Alan Greenspan's policy of flooding the world with money.
- In his international webcast of July 25, 2007, LaRouche declared that the international financial system had reached the breaking point. He said:
- What's listed as stock values and market values in the financial markets internationally is bunk! These are purely fictitious beliefs. There's no truth to it; the fakery is enormous. There is no possibility of a non-collapse of the present financial system—none! It's finished, now! The present financial system can not continue to exist under any circumstances, under any Presidency, under any leadership, or any leadership of nations. Only a fundamental and sudden change in the world monetary financial system will prevent a general, immediate chain-reaction type of collapse."
Who will tell the truth?
Behind the scenes, especially over the last year and a half, there has been increasing, grudging admission that LaRouche's record has been correct. Publicly, however, most experts, bankers, and public officials have preferred to let the "no one could have known..." lie stand.
One major exception comes in an article in the January 2009 issue of the monthly Italian magazine Area, which contains an article by former government advisor Massimo Pini. Pini writes that the financial crisis has prompted many to undertake self-criticism, and "some have pulled out old relationships with Lyndon Larouche, the only economist who really forecast the catastrophe, in many, many writings, published when no one else suspected it."
The future of the human race depends upon more leaders stepping forward, to tell the truth about the fact that LaRouche was right, and must be listened to today.
