by Harley Schlanger, LaRouche PAC:

Why the sudden, jumped-up drive to impeach this President, after years of multimillion-dollar, hostile investigations have all come up empty? Because of a telephone call? Does anyone really believe that?

The real reason would be obvious if Americans knew the truth about the world financial system—but they haven’t caught on to that just yet. Soon they will know. That coverup can’t last much longer.

The truth is that the failed megabanks of 10-12 years ago, which are fewer and bigger today thanks to the taxpayer bailout, have now failed again. The $23 trillion bailout of 2008-09 didn’t work; all of a sudden it has come unstuck. For almost a month now, the Federal Reserve has been forced to pump in $50-100 billion of short-term money into the Wall Street banks every business day, and there’s no end in sight.

The Fed pumped in $88 billion this Thursday alone.

The whores of the financial press claim that no one knows why this is happening. If you believe that, you probably believe the story of the telephone call. The truth is that there are zombie banks out there on Wall Street. The other bankers know they are effectively insolvent, either in their own right or by way of their bankrupt customers. Other banks won’t lend to them, and they secretly go to the Fed window, just as in 2008. The Fed zealously keeps the names secret, as they did then, because it would be the kiss of death for any of them if it came out.

“Astonishingly,” Pam and Russ Martens write in “Wall Street on Parade” today, “Congress has yet to call a hearing to ask these crucial questions.” Yes—seems they’re busy with something else….

“Let’s say, hypothetically,” the Martens continue “that there is a bank with a large, interconnected footprint on Wall Street that’s in trouble, and on top of that, there’s a big hedge fund taking on water and listing on its side. The New York Fed (one of the 12 regional banks in the Federal Reserve System) in that situation might be expected to call all of the big lenders on Wall Street to a secret meeting at its offices and ‘suggest’ (much like a consigliere makes a ‘suggestion’) that they bail out these entities for the good of the markets and financial system.”

They go back to autumn evenings of previous years:

“Here’s a paragraph from a Wall Street Journal report dated Sept. 25, 1998:

‘Meeting Wednesday evening at the headquarters of the New York Federal Reserve Bank, 15 financial institutions agreed to chip in $3.5 billion to keep alive the Long-Term Capital Management L.P. hedge fund.’

They add another Wall Street Journal report of Sept. 13, 2008:

‘The Federal Reserve Bank of New York held an emergency meeting Friday night with top Wall Street executives to discuss the future of venerable firm Lehman Brothers Holdings Inc. and the parlous state of U.S. financial markets.’

But yet, contrary to what these flashbacks might imply, what worked then will not work now—even if the American people were disposed to tolerate it all over again. As Helga Zepp-LaRouche has stressed repeatedly, the whole medicine-chest has been used up—$23 trillion in bailouts, quantitative easing (which the Fed has begun again), and zero interest-rates—even negative interest rates. Everything has been tried.

The present case is like that of Edgar Allan Poe’s “The Facts in the Case of M. Valdemar.” The only cure is that of Lyndon LaRouche’s proposals in his Four Laws and his proposal that the United States, China, Russia and India jointly initiate a “New Bretton Woods” world credit system to replace the present bankrupt world monetary system.

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