October 8, 2008 (LPAC)--Lyndon LaRouche called this morning's coordinated rate cut, "a new form of insanity. It's a clear sign of panic, but it's also a formula for hyperinflation. And it's a psychological formula for hyperinflation, as you see in the German case. This is 1923, this time on a global scale. That's what we should call it more and more; our people should say this is simply that, instead of wasting our time with long-winded perorations, which are doctrinal things, rather than simply getting to the point."

On today's trillion-dollar bailout of eight British banks, LaRouche said, "The British are having fun; back to their roots in the time of Edward III; they're going back to their roots, their Fourteenth Century roots. British economists return to Fourteenth Century roots, in the New Dark Age of the Fourteenth Century.

"The only thing we can say about this," he continued "which really sums it up, is that some people have a zeal to return to the middle of the Fourteenth Century. There's no other way to describe it accurately."

On the Fed's announcement yesterday that it would buy an undetermined amount of unsecured commercial paper, including from non-financial companies, LaRouche exclaimed: "More hyperinflation! More blowout! Don't assume it will stop just with the $1.6 trillion size of the commercial paper market at present. Who knows how much is out there? When you start getting these derivatives back in, you're going to find out that many orders of magnitude greater, are really out there. That's what the pressure is. The pressure is this vast derivatives bubble, in the quadrillions of dollars, which is larger than the whole world economy. And that's what's crashing in. People are trying to save that bubble."

"This was the idea of the protection, of the hedging," he continued. "The hedge is based on this crap. So, the entire hedge fund on which the assumed stability of the financial system was based, was that. And that's crap! And that crap now comes back to eat you! It's not nice.

"When you hear Bush, Paulson, Bernanke and their supporters, think back to the Fourteenth Century and the Lombard League," LaRouche advised. "This was the dominant thinking in Europe, and they all were insisting, going this way, doing this, doing this, doing it. Take the famous case as reported of Biche and Mouche. This is Biche and Mouche all over again.

"They're stupid," he concluded. "We can say, `Hey, guy, you're stupid! Is your banker as stupid as Bush is?'"