October 15, 2008 (LPAC)--The combined financial bail-out measures announced over the past 48 hours by the G-7 governments--on marching orders dictated by British Prime Minister Gordon Brown and his financial adviser Alan Greenspan--amount to placing "the full faith and credit" of each and every one of these governments behind the economic cancer known as the derivatives bubble. In other words, the British gameplan is for the derivatives bubble to gobble up the Nation-state, leaving only the Anglo-Dutch financial empire to rule the globe. That is what is now proceeding apace, with some $3 trillion in government moneys already thrown into the blazing inferno.

The recent announcements involved more than throwing hundreds of billions of dollars directly into the banks as fresh capital. ("The new capital injections should help," the London Economist noted happily today. "In theory $250 billion of new capital leveraged by ten-to-one could support $2.5 trillion of assets in the banking system.") The other steps included:

• Unlimited 100% guarantees by the Fed, the ECB, and the Bank of England for the interbank lending market.
• Unlimiteddollar swaps supplied by the Fed to all the central banks of Europe and Japan, which has translated into each of them also issuing unlimited dollar loans to banking institutions.
• FDIC 100% insurance of payroll and similar corporate checking accounts.
• Fed direct purchases of unsecured commercial paper, in amounts and terms yet to be announced