the eve of the long-awaited London conference of the G-20 nations, we are
rapidly descending into the chaos of a Second World Economic Depression
of catastrophic proportions. In the year since the collapse of Bear Stearns,
we have moved toward the disintegration of the entire globalized world
financial system, based on the residual status of the US dollar as a reserve
currency, and expressed through the banking hegemony of London, New York,
and the US-UK controlled international lending institutions like the International
Monetary fund and the World Bank. This is a breakdown crisis of world civilization,
prepared over decades by the folly of deindustrialization and the illusions
of a postindustrial society, further complicated by the deregulation and
privatization of the leading economies based on the Washington Consensus,
itself a distillation of the economic misconceptions of the Austrian and
Chicago monetarist schools. If current policies are maintained, we face
the acute danger of a terminal dollar disintegration and world hyperinflation.
The G-20 leaders are must deliberate a new set of policies
capable of leading humanity out of the current crisis. We must first identify
the immediate cause which has detonated the present unprecedented turbulence.
That cause is unquestionably the $1.5 quadrillion derivatives bubble. Derivatives
have provoked the downfall of Bear Stearns, Countrywide, Northern Rock,
Lehman Brothers, AIG, Merrill Lynch, and Wachovia, and most other institutions
which have succumbed. Derivatives have made J.P. Morgan Chase, Bank of
America, Citibank, Wells Fargo, Bank of New York Mellon, Deutsche Bank,
Société Générale, Barclays, RBS, and money
center banks of the world into Zombie Banks.