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It’s not a sign of genius to recognize that the “globalized”
economy has completely ruptured, especially for the so-called advanced
countries. Last week’s billionaires’ summit in Davos, Switzerland,
further reinforced the doomed mindset of the trans-Atlantic financial
elites. Despite their academic credentials, none of the leaders posed
a viable alternative to the proverbial elephant in the room: the $2.4
quadrillion bubble of derivatives obligations which cannot be
repaid.
The stress on this bubble comes from various places. Throughout the
week, Japanese bond yields have been keeping upward, causing the yen
carry trade to wobble. Along with this, the price of gold had reached
a record above $5,600 a troy ounce before settling back a little.
This broken-down system has been the main driver for endless wars
and color revolutions as a means of looting to prevent the system from
utter collapse. The possibility for a “preemptive strike” against Iran
was mooted on Wednesday by Secretary of State Marco Rubio, along with
threats against Venezuela if the interim President, Delcy Rodriguez,
does not go along with the Trump Administration’s policy.
A new approach is urgently needed today. American economist and
statesman Lyndon LaRouche proposed in 2014 his “Four New Laws to Save
the U.S.A. Now!” Those laws included the immediate implementation of a
global system of bank separation, modeled exactly on Roosevelt’s
Glass-Steagall law of June 16, 1933; the creation of national banks in
every country, in the tradition of Treasury Secretary Alexander
Hamilton’s First National Bank of the United States; the provision of
credit for the industrial development of the advanced and developing
sector; and the urgent increase of the productivity of the world
economy through crash programs for thermonuclear fusion power, space
exploration, and other advanced technologies.
Those laws will be discussed today in-depth in today’s Manhattan
Town Hall Project, and how they can be applied in the current
international strategic situation.
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