Simultaneous with the announcement by the Karlsruhe court, giving pretty much of a green light to the ESM and the Fiscal Pact, European Commission President Jose Manuel Barroso today presented a complementary proposal to create an "enabling mechanism" of sorts, which would make the ECB the bank supervisory agency for all of Europe, as of Jan. 2014. Once implemented, it would replace national bank regulators in chartering banks, conducting investigations, and so forth. After that, Bloomberg reported, the plan is to have the ECB authorize cross-border bailouts, pooled funds, and even to directly recapitalize banks via the ESM.
This would make the combined ECB and ESM a full-fledged hyperinflationary bailout machine for the British Empire's bankrupt banks, entirely by-passing any remaining traces of national sovereignty in Europe.
On the U.S. side, the Federal Reserve's FOMC began its two-day meeting today, which is expected to end tomorrow with the announcement of further measures of quantitative easing on this side of the Atlantic, as well.
So, everything indicates that the British and Obama are well on the way to getting what they asked for: a pre-election rolling out of the Big Bazookas to bail everything out for another day or two. But as Lyndon LaRouche warned last night in a discussion with associates, this crazy strategy could be exactly what blows everything up for Obama before the elections. As LaRouche put it:
"It's possible that Obama will become elected President, again... But that is not necessarily what's going to happen. What happens, if the United States economy blows out in the coming weeks ahead? What will be the effect of a collapse of the European economy, on the U.S. economy, at the time that the U.S. administration is gambling on a big bailout through hyperinflation? They're taking one spurt of hyperinflation, to carry Obama through to re-election. That's the plan. And it's hyperinflationary."