July 12, 2008 (LPAC)--The Bush Administration may move to bail out bankrupt Fannie Mae and Freddie Mac as early as today or tomorrow, increasing the US national debt overnight by half to about $14 trillion, in order to avert the certain failure of a planned Freddie Mac auction of $3 billion in short-term debt on Monday, the Wall St. Journal and composite media report.

Lyndon LaRouche responded today: "The Federal Reserve and the Treasury will unleash a hyperinflationary flood of credit to ailing companies, but it will fail. Without the three steps I have proposed, we're done for. I'm not talking about eventual collapse; we're on a very short fuse. I have the policy, and it will work; it's the only thing that will work. None of their schemes could work. The patient is dying; we're at a bedside death-watch. The patient is the US economy. We don't know exactly when it will die, but it will be very soon. In principle, the patient is dead already.

"There's no way that `they,' so-called, could find a solution," he continued. We have the solution, and they don't. I have defined the solution; everything else is a waste of time.

"We're in a crisis of civilization," said LaRouche. "There is a threat of the end of civilization in the near-term, not five years down the road. Exactly when, no one can tell, but it's a short time-frame. I'm proposing, not a new monetary system, but a credit system on the Franklin Roosevelt model. Only the US can make the proposal, but Russia, China, India and other countries would cooperate if the US proposed it."

"Otherwise, don't ask who will win," he concluded. "Otherwise, it's a zero-sum game. Everyone loses everything."