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Press Release

LaRouche: Argentina, Turkey Crises Show
That the World Is in a Hyperinflationary Explosion;
Protectionist Measures Are Needed

 July 18, 2023--Lyndon H. LaRouche, pre-candidate for the 2023 Democratic Presidential nomination, said today that the combination of the Argentina and Turkey financial crises indicate that "the world is now in a hyperinflationary explosion, analogous on a world scale to what happened in Weimar Germany in the summer and fall of 1923." LaRouche, the internationally renowned economist who on June 29 addressed a parliamentary hearing of the Russian Duma on the global financial crash, stated that "you have to go to measures which are typified by capital controls and exchange controls, into a protectionist mode. It's the only way you can bring this thing under control."

LaRouche will address a Washington, D.C. conference on July 24, on the topic "How to Survive the Onrushing Global Financial Crash."

In his remarks earlier today, LaRouche explained that, in order to understand the global crisis, "the key thing is to compare Argentina and Turkey. This is what's freaking out [U.S. Treasury Secretary Paul] O'Neill and company. Because in both cases, you have the figures which show that the attempt to do a bailout in Turkey is totally hyperinflationary. In Argentina, it's totally hyperinflationary. So we're now getting a Weimar-style hyperinflationary type of action on a very short fuse, like the late part of 1923.
"This thing is about to blow," LaRouche went on. "Look at the figures on these countries, look at what's happening in Turkey, in Argentina, in other countries. You look at that, and see that the rate of growth of this unpayable debt--and it's a self-aggravating growth, it's a pyramided debt--it's just outside the system. You add to it all this soft stuff outside; and then you just lost up to, say, $10 trillion in the U.S. alone, with the collapse of so-called financial values of various kinds of instruments--either lost on the books or it's not yet been reflected on the books, but it's happened.

"It's all coming down. It's a systemic collapse; it is not a cyclical collapse. The whole system is doomed. And it's obvious, as the case of Malaysia several years ago typifies this, you have to go to measures which are typified by capital controls and exchange controls, into a protectionist mode. It's the only way you can bring this thing under control. And the purpose of a protectionist mode is to get real production going, and to protect the institutions upon which the population and production depend. Anything else is only going to make it worse. Anything else is putting gasoline on the fire.

"The world is now in a hyperinflationary explosion, analogous on a world scale to what happened in Weimar Germany in the summer and fall of 1923." 

LaRouche noted that, in addition to adopting protectionist measures, nations and political groups within nations have to link up with the Eurasian Landbridge proposal, which LaRouche has helped bring into existence and is now becoming a reality. "That's the only alternative, and that should be said. That is the alternative," LaRouche underscored.

"The problem is simple. If Clinton were President and Bob Rubin were Secretary of the Treasury, the United States would face the fact that this shock is going on, and that something has to be done. They might not do the right thing, but they would do something which would preserve the world's confidence in the fact that they were committed to doing something.

"In the case of this dummy and the lunatics around him who run the Bush administration, the world is faced with the fact of a loose cannon, a government which is totally irresponsible in the way it deals with everything, particularly on economics.

"And therefore, the world is being thrown into chaos, not merely by the financial crisis, which is now taking hyperinflationary dimensions, but it's also thrown into a crisis by a crisis of confidence. Because the so-called dominant power in the world, the United States, doesn't function, because we have a piece of idiocy in the White House. And you have nobody, so far, in the political system--either Republican or Democratic Party--who has been willing to stand up consistently, to represent, from the United States standpoint, a serious consideration of the nature of this problem. And that's what the issue is. And these two things have to be taken into account.

"The system cannot be saved, it's gone. We have to have a new monetary system, which will return to the standards of monetary discipline of the 1950s, under the old Bretton Woods agreement. And we're going to have to have a rewriting of a lot of this paper. Just write it off. We've got to get the economies going."

LaRouche concluded: "So we have a crisis that's now in a hyperinflationary phase, which means you're on a short fuse. And the more people do to try to avoid and postpone the crisis, the worse they make it. In the meantime, you have a crisis of political confidence in the world. You have a government in Washington which, unlike the Clinton administration with Bob Rubin in there, has no ability, no capacity to inspire any confidence that there's sanity in Washington.

"And so you have these two crises going on at the same time. And people have to see these two crises--one, the real economic structural crisis, and the other, this political crisis. And that's what Argentina, Turkey, Brazil and other nations face. The question is, when you can throw a bunch of countries together, to realize that you have to create an alternative to this vacuum we have in Washington, which I'm doing a fair job on, but it's not enough."