The Prophecy of Global Collapse:
Greenspan vs. LaRouche
Oct. 26, 2008 (EIRNS)Websites and publications throughout the Arabic language world have been posting an Oct. 22 article by Kareem Al-Hazzaa', titled "The Prophecy of Global Collapse Between Greenspan and LaRouche," comparing the accurate and scientific economic forecasts of Lyndon LaRouche to the disaster of Alan Greenspan. The article was published in Arabic on October 22, 2008 in Kuwait's Awan daily newspaper, www.awan.com.kw. The article's text, translated by Hussein Askary of EIR, runs as follows:
"The critical moments the world economy is passing through are nothing new, because there have been many such decisive moments in world economy, and among these the fall of the Berlin Wall in 1989, and what that event revealed regarding the economic breakdown behind the Iron Curtain. That state of collapse was much greater than the expectations of the best informed western economists. Centralized planning was exposed as a great failure that cannot be reformed. This was coupled with, and supported by, the growing illusion about the private interventionist economic policies of the Western democracies. Market economy policies started replacing these policies quietly in large parts of the world. It [centralized planning economy] was dropped from the world economic agenda and there was no more praise heaped on it anywhere but in North Korea. However, in the year 2000, when the DotCom bubble burst, until 911, 2001, the U.S. economy was experiencing a limited recession. But a 'recovery' started with the successive lowering of interest rates....
"When it comes to the prophesies regarding the coming of the current crisis, Alan Greenspan (Former Federal Reserve Chief) stated the following in a radio interview with NPR earlier this year, and was published on the news site MoneyNews.com: 'What I have to forecast is that something will happen which is unexpected, which will knock us down.... The odds of that happening, I think, are rising, because we are getting in vulnerable areas.' Greenspan added: 'What I point out is that we're in a turning phase, and that the extraordinary improvements that have occurred in the world economy in the last 15 years are transitory, and they're about to change ... So, I think this whole process will begin to reverse.' On interest rates, Greenspan said: 'Now [they] are set by the supply of investment money worldwide; a force much larger than the concerted efforts of central banks, including the Fed.... We and all other central banks lost control of the forces directing higher prices in homes.'
In contrast to Greenspan and generally most economists in the West, the record of economist [Lyndon] LaRouche in economic forecasting has been, and still is, the most accurate and most scientific. Many years ago, LaRouche forecast this systemic global financial crisis and the collapse of the post-Bretton Woods floating dollar system. In a speech made on July 25, 2007, LaRouche said that the financial and banking crisis had entered its terminal phase in that month. One week after that speech, the chain of collapse of international banks started, beginning with what was falsely called the U.S. subprime loan market.
LaRouche presented early on the solution to the housing and banking crisis in the form of a legislation to be presented to Congress. Many city councils in various U.S. states adopted LaRouche's legislation proposal and called upon the U.S. Congress to adopt it too. This legislation called 'The Homeowners and Bank Protection Act' was the first step to pull the economy of the United Stated from the deadly crisis it found itself in, and it will be followed by more comprehensive steps to establish a new just world economic and monetary order which LaRouche calls 'a New Bretton Woods System.'
"Many believe that LaRouche's idea is the only alternative to pull the world away from the pincer arms of economic collapse and chaotic wars, behind which lies the Anglo-Dutch financial oligarchic crowd, as LaRouche calls it. This crowd, who believe that chaos is the only means to preserve their control over the globalized world economy, which is nothing other than a new version of the British Empire's system and the military-economic model of the British East India Company.
"This crowd owns and controls the most vicious intelligence machine on this planet, the British intelligence with both of its branches, the internal [MI5] and foreign [MI6] branches that have been penetrating most of the world's terrorist groups since the 1970s, protecting and controlling them, or destroying them whenever it is convenient to the geopolitical interests of this crowd, especially since these [terrorist] groups and similarly most of the world's political opposition groups are practicing their activities from London."
This article was republished in Saudi elaph.com news site and many other Arabic news websites in the days following the original publication on Oct. 22.