The Threat of War Feeds Financial Collapse, and Vice Versa

The world is facing a double crisis that has dramatically worsened over the past week: on the one hand, the danger of an escalation to world war, the potential theater of which is now being set in Southwest Asia and, on the other, an uncontrolled collapse of the world monetary system that would lead to widespread economic chaos (cf. below). These two dynamics — economic breakdown and warfare – feed each other. As the financial crisis worsens, it strengthens the establishment’s push for war to “save the system”, while the uncertainty over the outcome of the war scenarios contributes to the panic on the markets. As our readers have understood, the NATO military complex, represented by London, Washington and Brussels, is basically the same as the Wall Street-City of London financial complex.

In reviewing the double crisis with associates on Aug. 5, Helga Zepp-LaRouche, the leader of the Schiller Institute and co-initiator of the International Peace Coalition (IPC), called for voices and forces to come forward, visibly and strongly, to mobilize to counter these threats. To that end, the IPC will hold an emergency session on Aug. 9, in commemoration of the bombings of Hiroshima and Nagasaki, on Aug. 6 and 9, 1945, both needless acts of mass destruction. Demonstrations for peace are taking place in thousands of cities throughout the world this week. The IPC is also supporting the initiative taken by Chandra Muzaffar, the President of the International Movement for a Just World (JUST), who has written to the heads of all member states of the United Nations calling on the UN General Assembly to take emergency action to stop the genocide against the Palestinians in Gaza and the occupied territories.

Meanwhile, the world is awaiting with dread the outbreak of a full-scale regional war in the Middle East, following the assassination by Israel of Hamas leader Ismail Haniyeh in Tehran on July 31. Killing the Palestinians’ chief negotiator on a ceasefire and hostage release deal clearly signals Israel’s intention to continue the war, while staging it in Tehran was obviously designed to trigger a military response from Iran’s newly sworn-in President Pezeshkian. Just one day before, Israel had carried out a targeted assassination of top Hezbollah commander Fuad Shukr in Lebanon, also threatening a full-scale invasion of that country. And on Aug. 5, the Israeli Defense Forces announced they had assassinated Hamas Economy Minister Abdul Fattah Al-Zeriei in Gaza.

Officials of the Biden Adminisration, including Tony Blinken and Lloyd Austin, rushed to assure Netanyahu of the “ironclad” support of the United States in the event of retaliations from those attacked, and U.S. warships have already been sent to the region. Since President Biden has as much as admitted that he is not fit to govern, many are asking just who is making the decisions at this point. As for the danger of full-scale attacks on the Hezbollah, Washington and other Western capitals have called on their respective citizens to leave the country if possible.

From Russia, the Secretary of the Security Council, Gen. Sergei Shoigu, was in Tehran Aug. 5, at Iran’s request, for talks on military cooperation with the government. On behalf of President Putin, he asked the Iranians to show restraint in their response to Israel’s attack. Should the situation escalate, however, Russia is warning the U.S. not to take part in it.

These tensions underscore the urgency of Helga Zepp-LaRouche’s call for bringing together “wise men and women” from around the world to deliberate, in the framework of a “Council of Reason”, on the way out of the crises. This will be discussed at the IPC session on Aug. 9, which you can sign up for here.