British Financial Media Confess They Are Hooked on Hyperinflationary Junk
Jan. 20, 2009 (EIRNS)This release was issued today by the Lyndon LaRouche Political Action Committee (LPAC).
The City of London's two most prominent media outlets, the Economist and the Financial Times, have both come out like a bunch of smack junkies, demanding the creation of more and more toxic financial waste to help bailout the existing mounds of toxic waste.
The Economist commented on the latest British bailout package in an editorial suggestively titled "Another Shot in the Arm," which was accompanied by an even more suggestive picture of a syringe against a backdrop of the British flag, the Union Jack. They dismiss the latest British bailout as insufficient, saying that "there is little in the new package to give banks the incentive to put their profit motive aside and help reflate the economy." In any event, "the world's systemically important banks have regulators over a barrel... Britain's main banks know they will be kept alive." Better than the bailout, the Economist notes, "is the international move to relax the Basel 2 capital regime for banks," which would allow them to get away with just about anything, and overdose on hyperinflation.
The Financial Times, for its part, argued that the incoming Obama administration should go ahead and create a so-called "bad bank," which would centralize all the toxic waste in the system in one place, which the government would then bail out. This is the best route to take, they say, because U.S. Treasury bailout funds could then be leveraged into even more toxic waste creation: "The $100 billion of TARP equity could be geared up five times to provide $600 billion of purchasing power," the toxic junk addicts fantasized.