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Economic Advisory from Lyndon H. LaRouche, Jr.

Hoarding Crisis Signals
Doom of Financial System

August 14, 1995


Economist Lyndon LaRouche warns that the past several months build-up of a stampede from financial investments into hoarding of bullion, raw materials, and scarce world food-supplies, signals an imminent collapse of the world's financial system.

During the recent several months, the smart money of the world's super-rich families began to move out of the "derivatives" rotted financial markets, into hoards of gold bullion, prime-quality raw materials, and increasingly scarce world food supplies. This was prompted by the recognition of the fact that a general, unstoppable collapse of the world's monetary and financial systems was in progress. The failure of the governments to adopt any effective plan of action for dealing with that collapse, at the recent Halifax monetary conference, prompted accelerated movement into hoarding. The lunatic decision of the U.S. Federal Reserve System's Greenspan, among others, to adopt the same reflationary approach as the doomed Reichsmark-system adopted in 1922-1923, accelerated the stampede.

During the past two weeks, the stampede into two areas, gold bullion and metals such as tin and aluminum, broke the equivalent of the "sound barrier" in the Tokyo and London markets. Hoarding of increasingly scarce world food-supplies proceeds more quietly, but massively, through such massive speculators as Archer Daniels Midland's Bush ally, and Clinton adversary, Dwayne Andreas.

LaRouche has warned repeatedly, that the flight into hoarding shows the true opinion among the powerful families gathered around the Anglo-Dutch financier oligarchy. They have taken to the lifeboats, at the same time that the Wall Street Journal lies to the rest of the passengers, the suckers, by assuring them that the financial Titanic is not sinking.


LaRouche's advisory, supplemented by a run-down on the current pattern of hoarding in hard commodities, and metals, appears as the lead article in the August 21, 1995 issue of The New Federalist, which can be reached at Box 889, Leesburg, VA 22075.

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