October 8, 2007 (LPAC)-- With leading government officials and presidential hope-nots still in utter denial regarding their respective inability to accomplish anything under the currently collapsing world monetary system, Rodrigo Rato, the outgoing chief of the International Monetary Fund, fired a parting shot at national governments, warning heads of state that the ongoing world credit crisis would not only hit bankers, but the budgets of nations.

In an interview with the Financial Times, Rato said that the credit squeeze was a "serious crisis" still very much ongoing, which would reduce growth worldwide. "Policymakers," said Rato, "should not think that the problems will stay at the desk of the bankers. Problems will come to the real sector; come to the budgets--that is something we keep telling people."

The market crisis "is going to have an impact on growth", and this will force finance ministers to revise budget assumptions, Rato said. The effects of the credit squeeze will be felt "more quickly in the U.S., and to some extent [in] Europe and Japan," but "everybody is going to feel some impact."

Rato did not mention that this crisis presents both the opportunity and necesssity for nations to create a New Bretton Woods monetary system, as American economist and longtime IMF opponent Lyndon LaRouche has proposed. The options are laid out: We either mobilize the base of the population to reject the disasterous hedge-fund-humping policy proposals already offered, and continue, by moving that body toward erecting a firewall protecting homeowners and banks, or much good will suffocate in this mire.