ndidate Lyndon H. LaRouche, Jr. released a statement that opened as follows:

"On Friday, April 2nd, the pack of ghouls and goniffs otherwise known as President George W. Bush, Jr.'s campaign strategists, pulled one of the dumbest publicity stunts in modern history, with the way in which they, and Federal Reserve Chairman

Alan Greenspan, orchestrated the fraudulent reports intended to convince the world's dumbest suckers that there is an ongoing uptick in the already stumbling, bumbling, broken-down U.S. economy."

LaRouche was referring to the release of the clearly fraudulent announcement by the U.S. Labor Department that day, that the U.S. economy had created 308,000 new jobs during March. The announcement backfired with a sonic boom: it triggered a huge sell-off in the bond market, on the expectation, with this great "recovery" underway, that the U.S. Federal Reserve may raise interest rates before long. As bonds are dumped, their prices fall, and their yields rise. Since long-term bond yields are the basis for defining mortgage interest rates, mortgage rates started climbing sharply late Friday, just as stock prices of mortgage lenders, home builders and home improvement retailers fell sharply. The full impact of the bond market sell-off on the extremely precarious mortgage markets will only show up beginning today, Monday, April 5. Experts have estimated that even as little as a 1% rise in mortgage rates would be enough to pop the mortgage bubble, and the world financial system along with it.

Ever since the collapse of the Long Term Capital Management (LTCM) hedge fund in September-October 1998, which almost brought down the world monetary system, the policy of Federal Reserve chairman Alan Greenspan and associated international financiers has been to throw "a wall of money" at LTCM and related liquidity problems. They have thus created the greatest speculative bubble in human history, as seen by the astronomical house prices in the U.K., U.S., and Australia for instance. This giant bubble is overdue for a collapse; the only question now is, what pin-prick will cause it to pop?

Whether Bush "pinned the tail on the donkey" on Friday or not, the present IMF-dominated "globalist" free trade system of usury and speculation is doomed in the immediate weeks or perhaps a handful of months ahead. The issue now, as LaRouche has repeatedly stated, is to put the bankrupt international financial system through bankruptcy procedures, and return to national banking and national sovereignty. We must return to the policies that U.S. President Franklin Delano Roosevelt used to pull the U.S.—and the world—out of the Great Depression of the 1930s, with the emphasis on creating masses of new credit for physical production in infrastructure and other urgently-needed aspects of the physical economy. This is exactly the opposite of what Australia did at the time, under the threat of coups from the mass fascist militias of the Old Guard, the New Guard, and the League for National Security.

Today, we must make one of two choices: either return to national-banking centered sovereign nation-states, or suffer the greatest financial collapse since the 14th Century which would usher in global chaos, police states and wars far worse than those of the 1930s.

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