From the Vol.1,No.1 issue of Electronic Intelligence Weekly
City of London Expert Reveals Fraud Behind "Recovery"

"The main basis for what is being labelled as 'a recovery,' is that the Federal Reserve has been pumping large sums of money into the system," a senior City of London source told Executive Intelligence Review's Wiesbaden office on March 5. "The market, being so depressed, has been waiting for a signal to celebrate, and the Fed has now given them this signal. The money being pumped in, is greater than before Y2K! The so-called Fed 'free reserves' that have been released, are greater than the amount released in December 1999."

This source noted that before the Fed so acted, "there was not much going into the market, because of the effect of Enron, Arthur Andersen, and so on. But now, money is being pumped in on the side of the market, and it is very easy, at such times as now, to get a rally."

Another factor has been the new statistics released last week on manufacturing, and the "upward revision of the figures of consumer spending for the last quarter of 2001." Asked what that latter "revision" is based on, he said, "We simply don't know what goes on, with the machinations of these statisticians in Washington."

Yet another element, is an attempt to jack up "the markets" in anticipation of a new war against Iraq. As he put it, "You need to bring the markets significantly up, in the period before a new conflict. It has to be at a non-threatening level, so that the shock effects of a new conflict don't generate levels that are too low."

The City of London insider said that while "there has been an apparent let-up in the severity of the downturn, there are many risks ahead." He enumerated four such risks: the derivatives situation of American International Group (AIG); the volatility of the Japanese situation, particularly as the effects of the end-of-March ending of deposit insurance become impossible to conceal, in the middle of April; the oil price rising again; and the upsetting of the "loose money" policies of the Central Banks, weakening Central Banks' credibility, and thereby triggering a "disorderly effect on the financial markets."

This individual had no problem agreeing with Lyndon LaRouche's characterization of all the "recovery" talk as a giant fraud.

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