Aug. 20, 2008 (LPAC)--Addressing the hyperinflationary actions being proposed to save Fannie Mae and Freddie Mac from imminent banrkuptcy-- either through borrowing at super-high interest to pay $223 billion in bonds coming due Sept. 30, or utilizing Secretary Paulson's new bailout fund--American statesman Lyndon LaRouche, advised: "There is only one way to solve this: Pass my Homeowners and Bank Protection Act of 2007. Otherwise, the bail out will blow out the United States. It won't work, so it will blow out Fannie and Freddie, and trigger a whole chain reaction. There's only one thing they can do: the HBPA. It's the only measure that will work. Change the subject: Freeze it."

LaRouche continued, "The United States is not a monetary system; it is a credit system under the President and the U.S. Congress."

On the immediate state budget crises in New York, Florida and Virginia, LaRouche reiterated: "The United States is bankrupt. Every state is bankrupt. The question is, are you willing to put the whole system into federal bankruptcy reorganization? And pay what should be paid to keep the physical economy functioning, including its people. We'll postpone payment on other things, until we resolve this bankruptcy. That's gonig to take some time to do, so people should not be looking forward to any settlements on these things--bankrupt states and so forth--until some time down the line, when we reorganize the economy."

Lyndon LaRouche is the only economist who has never made a wrong economic forecast. LaRouche's HBPA provides for no foreclosures, no bailouts of speculators, and keeping Federal and state-chartered banks open.