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How the Treasury and the Fed handled the crisis, and the rapidity with which Congress moved to stimulate the economy, shows that fiscal and monetary policies do work; that Keynesian economics is still relevant to our post-modern times.
Our economy is now addicted to debt, and to continue our lifestyle and appearance of wealth we must continue to borrow and be creative at figuring out ways to tolerate increasing levels of debt. Unfortunately, it is a house of cards that will eventually fall. Those who are wise will flee from personal debt, and will hold assets that preserve value, as opposed to holding it in a paper currency.
As the world financial and economic crisis comes into its own, the Western community leaders are seeking to impress on mankind the idea that this upheaval will end up ‘turning the world into something different’. Even though the picture of the 'new world order’ remains vague and fuzzy, the main idea is quite clear: A single global government, goes the argument, has to be established if we don’t want general chaos to prevail.
Lyndon LaRouche today continued to assail the Bush Administration’s multi-trillion-dollar bailout swindle, charging that the socalled Paulson Plan would hand trillions of dollars in U.S. taxpayers’ money to foreign financial interests, particularly British interests.
The nationalization of Fannie Mae and Freddie Mac shows that the U.S. is “more communist than China right now” but its brand of socialism is meant only for the rich, investor Jim Rogers, CEO of Rogers Holdings, told CNBC Europe.
Sen. Oskar Peterlini officially presented to the Italian Senate a "Motion for the Reorganization of the International Monetary System: the New Bretton Woods." The motion calls upon the Italian government to "act internationally to promote" a new system, "modeled on the New Bretton Woods as proposed by the American economist, Lyndon LaRouche."
Lawmakers in the U.S. House of Representatives have voiced concern to Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke about proposed steps to bailout U.S. financial institutions.
U.S. President George Bush has invited both presidential candidates and the Congressional leadership to the White House in hopes of securing a deal to help the nation's ailing financial sector. The president urged public support for the rescue plan in an unusual nationally broadcast speech to the nation late Wednesday.
In response to a question from EIR, who asked if Tremonti's New Bretton Woods proposal would be on the agenda, as Italy takes the chair of the G8 this year, Italian Foreign Minister Franco Frattini replied, "Tremonti intends to propose a new item for the G8 finance ministers which is to build a new Bretton Woods arrangement."
US Federal Reserve says it will auction up to $180 billion to markets in coordinated action with central banks in Canada, Britian, Japan, Switzerland, European Central Bank.
An economic analyst says by buying out investment giants, the USA had transformed into the USSRA (the United Socialist State Republic of America).
The US Federal Reserve Board said a bankruptcy involving AIG would cause significant problems in the world's already fragile financial markets.
A former adviser to Moscow and other post-Soviet governments says Wall Street woes are likely to be felt acutely in Russia. Anders Aslund warns that the fallout could combine with a beefier foreign policy to crush hopes for key reforms.
Dmitry Medvedev has promised Russian business there will be no shortage of bank finance. He said the government would minimize the negative impact of the global financial crisis and the military conflict in South Ossetia.
Lehman Brothers has filed for bankruptcy protection to become the third top American investment bank to depart the scene in six months.