Memo On Stock Market "Volatility" and the Trap for Trump

 Former Reagan Administration Director of the  Office of Management and Budget  David Stockman

Former Reagan Administration Director of the Office of Management and Budget David Stockman

The crisis is not just a stock bubble.  The bubble is a symptom of the bigger problem, which is the deliberate shut down of the physical economy of the U.S., which has been accelerating since the August 1971 decision by Nixon to end the fixed exchange rate system of Bretton Woods, by ending the backing of the dollar by a gold reserve, turning the U.S. into a "consumer economy" dependent on debt bubbles to fund consumption, and financial "innovation", i.e., ever-more exotic Ponzi swindles, to make money.  

I recently wrote about the danger implicit in President Trump taking credit for the stock market bubble  -- when it pops, he will be blamed.  By taking credit for the rapid climb upward on stock markets, and claiming this is proof of a broad-based economic recovery, the President is being set up.   The Crash, when it comes, will be "Trump's Crash."   (See https://action.larouchepac.com/decision_time_for_us_economy.  This was re-posted widely, including on coldstonetruth, Roger Stone's website.)

While this may not yet be the "Crash", it should provoke people around the President to urgently warn him that he is being set up by the Goldman boys, who tell him that the stock bubble is proof of a strong economy.  During the campaign, he effectively ridiculed this, when Hillary tried to claim that Obama had launched a robust economic recovery -- citing the appreciation of the stock market as proof -- and saying she would continue the Obama speculator-friendly policies.

He should be reminding Americans that the real economy is still very weak, due to the economic policies of free trade of Bush and Obama, and the repeal of Glass Steagall, which transformed the U.S. from an economic powerhouse, based on physical production, to an economy dependent on "trading income" from buying and selling financial instruments, while shutting down domestic manufacture.  He should identify the inflated market cap as the "Obama bubble", not embrace it, for the "Trump bubble" will be turned against him when it pops.

It is no surprise to anyone watching closely the hysteria surrounding the Nunes' memo, as the whole narrative of "Russiagate" collapses, that financial manipulation can be used as either a diversion, or the next go-to option for the anti-Trumpers to use.  The Mueller witch hunt, though still being vigorously pushed, will likely fail, if it is consistently and properly exposed as a fraudulent regime change operation.  False flag terror operations and financial chaos are frequently set in motion when the global plans of the financial oligarchy are disrupted, as they were by the election of Trump.

See also: The British Have Shown Their Hand from LaRouchePAC.com

The President must now follow through with his campaign promise to restore Glass Steagall Bank separation, to guarantee that there will be no bailout this time for bankrupt banks, and that the savings and deposits of Americans will be protected.  Glass Steagall is the first of the Four Laws drafted by Lyndon LaRouche, which provide a blueprint for the revival of the American System of physical economy, which President Trump has pledged to accomplish.  (For a full discussion of LaRouche's Four Laws, you can download the pamphlet in pdf form here: https://larouchepac.com/sites/default/files/four-laws-pamphlet-high.pdf)

The downward plunge of stock markets in the last days should serve as a warning that there is no time to waste.  Defeating the Deep State coup, and ending the funny-money/speculative bubble policies of the central banks, acting on behalf of the financial oligarchy, require a full, aggressive, thoughtful mobilization by American citizens NOW.