Panic on Wall Street, Danger of War — There is No Time to Waste for the New Paradigm
The interbank lending system nearly exploded on Tuesday, with interbank lending rates (normally maintained at the FED rate, which was between 2.0% and 2.25% on Tuesday) exploded to 10% due to a lack of liquidity in the bond markets. As interest rates decline to near zero — or even negative — speculators (euphemistically known as “investors”) would rather speculate in derivatives than to buy low-yield bonds.
The Federal Reserve, for the first time since the 2008-9 panic, dumped over $128 billion into the banking system to keep things afloat — but this may not be enough to stem the tide. Also, the Fed today, as expected, lowered the Fed rate by a quarter percent, but did not go beyond expectations in order to respond to the panic — i.e., no new quantitative easing. More paper may be needed to stall the inevitable crash, as President Trump is demanding of the Fed, but nothing short of Glass Steagall reorganization of the entire banking system can resolve the problem.
Add to that the danger of war. Secretary Pompeo is in Saudi Arabia, where some officials, U.S. and Saudi, are trying to blame Iran for the attack on the Aramco oil facilities. President Trump has insisted that he wants to avoid a war, that there are “other options,” and announced only that new sanctions would be imposed on Iran.
Meanwhile, the political situations in both the UK and in Israel are nearing terminal crisis. Bibi Netanyahu failed to gain a majority in the re-run of national elections Tuesday, and neither he nor his primary opponent Benny Gantz have the numbers to form a government. In the UK, the Supreme Court is hearing testimony on two suits charging Prime Minister Boris Johnson of lying (to the Queen, no less!) about his intention in suspending the Parliament. The fate of Brexit is still up in the air as the October 31 deadline approaches.
And in Washington, the US Congress and the media are hosting, and heaping praise on, both Joshua Wong, the boy-wonder from Hong Kong sponsored by the regime-change apparatus in London and Washington to destabilize China, and Greta Thunberg, the abused teen being paraded around the world with a doomsday message that the world will die in 12 years if industrial progress is not immediately reversed.
Barack Obama invited the pathetic Greta Thunberg to his Washington home, declaring that he and Greta “are a team,” thus exposing to the world what the LaRouche Movement has always known — that Obama has embraced the racist, genocidal lunacy of the British Empire’s eco-fascist demand to drive the world back to a primitive energy regime with the sun and windmills, capable of sustaining only a small portion of the current human population.
Time is short, yet the potential for revolutionary change has never been greater. Chinese Premier Li Keqiang is in Moscow, where China and Russia have agreed to a dramatic expansion of trade and cooperation in scientific projects, including the establishment of a Joint Moon and Outer Space Research Center. Last week, in Xian, Helga Zepp-LaRouche, representing Germany at the 2019 Euro-Asia Economic Forum, pointed to the international cooperation in space exploration, and in the Belt and Road projects on Earth, as the necessary means for peace, while France and Italy were also represented by friends of the LaRouche movement, Jacques Cheminade and Nino Galloni.
NASA Administrator Jim Bridenstine has insisted that international cooperation is central to the historic Moon-Mars project being implemented by the Trump Administration, and last week told LaRouche spokeswoman Kesha Rogers that he would like to help in our campaign to intervene on college campuses around the world, to win the next generation of youth to the optimism of the space program — that “The Age of Reason is in the Stars.”