BUBBLE ABOUT TO BURST?
Beware When "News" Programs Get Boring
In the book, *Extraordinary Popular Delusions and the Madness of
Crowds*, past financial bubbles -- the Tulip Craze and the South
Sea Land Bubble -- are outlined. The current financial craze --
derivatives and "irrational exuberance" in the stock market -- is
nothing new. It too will end, just as past financial lunacies
have ended, with the bubble bursting and tremendous financial
Concurrent with the growing financial bubble of the past 20 or so
years has been a "reality bubble," personified by the "political
correctness" movement. Crazy ideas are browbeaten into the
public mind, and disturbing (to the reality bubble) truths wander
outcast, exiled from mass media outlets. But the bursting of the
financial bubble is a cloud with a silver lining: concurrent
with economic collapse, "political correctness" will wither away.
"The sky is falling. The sky is falling." Lyndon LaRouche and
his worshippers have chanted their mantra of doom for years. But
sooner or later, the odds favor that they will be correct. The
current issue of New Federalist (3/24/97) points to now as being
Beware when mass media "news" gets too boring: at such times, we
know that a lot is cooking beneath the surface.
ITEM: Federal Reserve Chairman Greenspan has called surreal
stock market highs irrationally exuberant. It now looks like the
Fed is about to raise interest rates. Does Greenspan's wife, NBC
newsperson Andrea Mitchell know anything? Do you think she'd
tell us about it?
ITEM: New Federalist, itself a shaky source belching LaRouchian
"thought," nonetheless includes quotes from leading European
newspapers to support its claims of imminent, and even *ongoing*,
collapse. Quoting from a London Sunday Telegraph (March 16)
Business Section article, New Federalist sees a larger meaning:
the very fact that Telegraph *prints* the article is *in*
*itself* significant. Says Telegraph: "The City's worst
nightmare, a meltdown provoked by a crisis in derivatives
markets, suddenly looks less like a lurid chapter from a
paperback, and more like a future event." To this, New
The significance of the Sunday Telegraph story, and of the
same paper's March 9 warning of the "$55 Trillion Horror
Story," lies not in the articles' texts, but in the fact of
LaRouche, in a feature in last week's EIR magazine (March
21), observed that the Sunday Telegraph's publication of
the March 9 story "reflects a radical phase-shift in both
the international financial situation, and also the
ITEM: New Federalist quotes "a senior British media official" as
saying, "My reading is that something very big is about to
ITEM: Donald Gordon, head of international insurance giant
Liberty Life, warns of "dramatic casualties," and adds that Wall
Street "will be at the center of the readjustment."
ITEM: Congressman Bob Barr (R-Ga) wants to impeach *both* Bill
Clinton and Al Gore. In his column, "Inside Washington," London
Sunday Times Washington correspondent James Adams writes that
Barr's going public with the impeachment idea "represents a
significant escalation." Barr reportedly has initiated formal
preparation of articles of impeachment.
ITEM: Says Congressman Henry Hyde (R-Ill), "We are studying the
law of impeachment, the procedures of impeachment... we'll be
ready when the time comes." When will "the time" come? When the
financial bubble bursts and millions of usually insensate
Americans discover that they are furious about it?
ITEM: Credit card delinquencies in the U.S. are at record levels
-- highest since 1973, when records were first kept by the
American Bankers Association. Have you noticed lately how banks
have been *begging* you to please, please sign onto their Visa
and Mastercard offers? Can you say, "Pyramid?" Can you say,
"Debt bubble?" In eleven years, credit card debt held by U.S.
households has quintupled. Can that debt be re-paid, or will it
be repudiated? What happens if it is repudiated?
ITEM: For about the past year, the ultra rich have been moving
their wealth out of financial instruments and into durable goods.
Do they know something?
So you, you turn on the evening news and what do you see? You
see Doctor Quack soothingly and handsomely giving his bedside
manner to ageing housewives. You see a claque of so-called
"feminists" whining for *yet* *another* pillow to sit on. You
see Bill Clinton spewing endless vocabulary. Beware when the
"news" gets boring.