http://www.bloomberg.com/apps/news?pid=20601087&sid=auKCKTSSU7yE&
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By Doug Alexander and Steve Matthews

Sept. 5 (Bloomberg) -- Former Federal Reserve Chairman Paul Volcker said the U.S. financial system, dependent upon securitization rather than traditional bank loans, is broken, and may contribute to the weakest expansion since the 1930s.

``This bright new system, this practice in the United States, this practice in the United Kingdom and elsewhere, has broken down,'' Volcker said today at a banking conference in Calgary. ``Growth in the economy in this decade will be the slowest of any decade since the Great Depression, right in the middle of all this financial innovation.''

The former Fed chief projected ``a lot'' more losses from the collapse in the mortgage-backed debt market, after the more than $500 billion tallied so far, should the U.S., European and Japanese economies fail to pick up. He urged changes in financial regulations, echoing calls among sitting officials and legislators.

``It is the most complicated financial crisis I have ever experienced, and I have experienced a few,'' said Volcker, who has endorsed Democratic presidential candidate Barack Obama. Volcker ran the Fed from 1979 to 1987, and engineered an increase in interest rates to 20 percent to quell inflation that exceeded 10 percent.

Job Losses

Volcker's comments came after a government report today showed the U.S. unemployment rate rose to a five-year high as the economy lost more jobs than forecast in August. The report underscored concerns that U.S. consumer spending will weaken and push the American economy into a recession.

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Head down wall street from broadway a coupla blocks and head north to the federal
reserve building. As you take your leisurely stroll round the financial center,
ask yourself whether the system you're observing is modern or postmodern.
And if it's modern, then it is perpetually tied to colonial war fascism forever
as a means of destructive development and wealth concentration.

As Lyndon Larouche points out, this is the result of british free trade economics
stripping and reducing national investment for a permanent comparative disadvantage.
Ship us your doctors, and stay a rice-paddy. And this system of imperial finance
is based on conquoring new lands, lanuching new wars, new ships, new pilliage and
get rich schemes every few years to breathe life in to the casino.... but after
you walk around those streets for a while - it could be a day or decades -
you'll discover its nothing but a big casino ponzi scheme of lazy selfish getrichers.

Surely they'll surge the bullshit again and again with new bubbles that this brand
of plunder-capitalism demands - but it remains that the religion of our age is
ever-expanding free-trade and growth - and the true believers will always repackage
the shit in a new box.. they are brainwashed believers - dedicated and dangerous.

And as you walk down broad, down past chase, the federal building, the old morgan
building and the famous stock exchange with its grenade-proof exterior - feel in
your heart for a sign of whether this is the system of the past or the future of humankind. Then its not a matter of reviving a federal reserve colonial bubble
to perpetuate white supremacy, but a matter of real survival for all persons on
our planet... that we end the federal reserve system for a public bank that issues
currency backed by hard resources. Until then, all the pundits and leaders will
propose printing new paper as their solution <-- it is the way of these zealots
of the church of infinite growth and dominion of their enrichment.