September 10, 2007 (LPAC)--Ken Rogoff, the former chief economist at the IMF, speaking to the Financial Times on the side of the Cernobbio conference in Italy, exposed the bankers insane intent to save the hedge funds at the expense of the banking system. Rogoff prescribes that in the current "window of vulnerability," we must expect that "fairly aggressive interest rate moves" will be made. But should they prove "not to be enough" then "dramatic regulatory intervention" will be needed. And how to force that development? Rogoff says, "Having a medium-sized bank go under would almost be a blessing" because it "would give [central banks] confidence to do something more dramatic."

At the same conference, the outgoing head of the International Monetary Fund Radrigo de Rato told FT that the current credit crisis is merely a "repricing of risk" which is "healthy" for the medium term stability, despite the "pain." So, the IMF genocidalist muses, the risk "reckoning is probably a welcome one, but it does not mean it will be a painless one." The "serious crisis" of the credit shutdown, he lies, will be limited due to the strength of the global economy.

Lyndon LaRouche responded that Rogoff's and Rato's approach, to let the banks collapse, is totally insane and should be denounced as such. As LaRouche has emphasized, what needs to be done is to protect homeowners and state and federally chartered banks. This must be a flat freeze with no pricing of mortgages or bank assets. It must be a genuine firewall, an absolute firewall. Don't try to negotiate a compromise and don't encourage anyone else to do so.