November 27, 2008

November 26, 2008 (LPAC)-- Commenting on yesterday’s announcement of a new injection of $800 billion into the banking system, Lyndon LaRouche said today:

"This is going to turn their debts into assets. They’re going to take Fed money, deposit it in the system in their name, and they’re not going to do any lending. How the hell is that going to stimulate the economy? They don’t know how to spell ’stimulation.’ They really mean to say ’suffocation.’ What we have here is a lack of understanding of the English language. They should check their dictionaries. What they’re really talking about is not ’stimulation’ but ’suffocation’ -- $800 billion worth of more suffocation."

"They’re going into a hyperinflationary phase now. All of this is preparing for launching into the hyperinflationary phase. They’ve been holding back on the hyperinflation for a while, by various tricks; now they’re coming to the point that they can’t get by with that anymore. Now they’re going to unleash hyperinflation."

U.S. banks have already put at least $600 billion of the $1.3 trillion in extraordinary Fed lending back on deposit to earn interest, rather than lending it, according to financial commentators. The same process is occurring in Europe where the European Union today announced a $258 billion stimulus package.