October 20, 2008 (LPAC)--Lyndon LaRouche today strongly criticized those who claim that the worst of the "financial crash is over,'' declaring that what the world is going through is not a financial crash, at all, but a far more devastating disintegration of the entire global financial system.
LaRouche explained: "Dummies do not understand what is happening now. But here is what is happening: There are two phenomena going on at the same time. First, we are seeing a hyperbolic hyperinflation in the financial arena, particularly with respect to the quadrillions of dollars in outstanding derivatives. The U.S. Federal Reserve and other central banks around the globe are generating massive amounts of hyperinflationary new money, new dollars, in their doomed effort to bail out the quadrillion dollar collapse of the world financial system.
"At the same time,'' LaRouche continued, "we are seeing a temporary collapse of costs of key commodities, such as gasoline. The reason for the price collapse is that world trade and world production have collapsed. The global real economy is crumbling, in most parts of the world. Production is falling, need for raw materials and manufactured goods is crumbling, as people lose their jobs, lose their savings, lose their homes.
"So we are witnessing two simultaneous developments: Hyperinflation on an unprecedented scale, in the financial realm, and a collapse of physical production worldwide, causing a fall in commodity prices. This is an explosion, not a crash, and that is plain to see. Only dummies could miss the true significance of the current phase of this systemic disintegration process.''