ZEPP-LAROUCHE WEBCAST

A Financial Crash Is Coming—
A Great Tsunami

This is the edited transcript of the Schiller Institute’s August 21, 2019 New Paradigm interview with the founder of the Schiller Institutes, Helga Zepp-LaRouche, by Harley Schlanger. A video of the webcast is available.

Harley Schlanger: Hello, I’m Harley Schlanger from the Schiller Institute. Welcome to our webcast today with our founder and President Helga Zepp-LaRouche. It’s August 21, 2019.

We’re in the midst of an extremely turbulent world, with things flying all over the place, events taking place, some surprising developments. Let’s start with the financial situation. There are some completely crazy proposals being floated, indicating a crash is coming.

Helga Zepp-LaRouche: I think the next financial crash is coming with absolute certainty. It’s coming on like a big tsunami. The only question not yet decided is: Will it be this year, which could very well happen, or will the measures proposed by the central banks and the G7 governments, be sufficient to stop a blowout this year and bring it into the next year—but for sure, before the Presidential election in the United States 2020.

The signs are manifold, but I think one of the more telling proposals put out quite openly, is that of “helicopter money” in the form of a paper proposed by BlackRock, the largest private equity firm in the world, involved in all kinds of things. It has produced a paper for the August 22-24 Jackson Hole Economic Symposium, where all the top bankers and government financial officials of the world gather once a year.

BlackRock’s proposal for a “Standing Emergency Fiscal Facility” calls for a financial “regime change” to abandon the so-called “independence” of the central banks. Now, if you think this is sounding like what we say, that we should go back to a national banking system, let me assure you, it’s quite the opposite, because what they propose is to sort of merge the governments and the central banks, and go to what they call “direct investment” or direct delivery of money to anybody who needs it. And when they talk about meeting the inflation requirements, they don’t mean physical goods, or anything like that, but what they’re talking about is to keep the altogether, estimated $1.5 quadrillion derivative bubble going.

LaRouche’s ‘Triple Curve’

Our viewers and readers may remember my husband’s “Triple Curve,” a pedagogical device he developed in 1995 for a conference at the Vatican in Rome. In a very astounding but simple and convincing way, he showed how the financial and the monetary aggregates are moving in a hyperbolic direction upwards to a certain point, while the physical-economic input/output is moving hyperbolically downwards.

We have now reached the point of instability where no amount of liquidity pumping will be sufficient to maintain this bubble. So, we are heading toward the storm of storms, and there is absolutely not going to be any solution, except those which were proposed by Lyndon LaRouche: Glass-Steagall; nationalize the central bank [the Federal Reserve System], making it a National Bank in the tradition of Alexander Hamilton or for that matter the Kredit�anstalt für Wiederaufbau in the postwar reconstruction of Germany; and then establish a new, international credit system, a New Bretton Woods system; and then go into a crash program for fusion, for space research cooperation, and cooperation with China on the New Silk Road.

Unless all of this package is being put on the table, quickly and simultaneously, nothing will stop this crisis. But I’m optimistic that things are actually moving in a direction that the implementation of the LaRouche solution is not impossible at all.

Schlanger: Helga, just to make it clear to our viewers: The proposal being made by BlackRock does not deal with the debt situation in any sane way, but in fact allows the debt to continue to be carried, by creating more debt, by pumping in more money. Is that what the BlackRock proposal ultimately boils down to?

Negative Interest Rates Coming?

Zepp-LaRouche: Yes. The trans-Atlantic nations’ central bankers are already doing everything they can imagine. Since 2008, they’ve tried massive quantitative easing, pumping money; then they went for zero interest rates; now it’s negative interest rates, and not only for the larger accounts, but there is now a move to even go to negative interest rates for savings and loans banks—in which cash deposits incur a recurring charge rather than receive interest income. That’s pure and simple stealing from the wallet of the so-called “little people.”

If you have any savings for your retirement, they’re just going to take that away, step by step. Even the Bavarian Minister-President Markus Söder is now proposing legislation prohibiting negative interest rates for accounts below EU 100,000. So, he obviously knows this is an issue where the population really gets completely mad, because it affects them in the most direct way.

I think that the central bankers have lost all ability to actually intervene. They have used up all the fiscal and monetary tools available to them, none of which have worked to stabilize the physical economy, much less improve it. This is why we are promoting the LaRouche Solution, as the only way to solve this problem.

Schlanger: The situation is worsening. We’ve talked before on this webcast about Deutsche Bank. Now there’s new evidence that Commerzbank is following in the same path.

Failing to Learn the Lessons

Zepp-LaRouche: Yes, at Commerzbank they are talking about closing 400 of their 1,000 branches, laying off 9,500 employees—almost 20% of their workforce—and their stock has dropped in the last several months, from EU 24 to around EU 6. So this is really another case, just like Deutsche Bank, of the absolute inability of the present liberal system to solve these problems, and Commerzbank is 15 percent owned by the German government, so this is also a sign of the times. And these are not the only banks that are in this condition: This is merely what is out in the news in Germany, but that is the condition of more or less the entire Western banking system.

Schlanger: Another example of failing to learn the lessons is Argentina, where the present government of Mauricio Macri followed the IMF policies—austerity, bailouts. After getting completely crushed in the recent primary elections, he then announced he was going to continue doing the same thing. This could be a trigger for the crash, couldn’t it?

Zepp-LaRouche: Yes. Because this is highly contagious. I think the inflation, the collapse of production, all the result of Macri’s policies, is throwing Argentina into a bond crisis that could spread to any country—Turkey, Brazil, for example. It could even take down larger countries. So, it’s really one more element of this pending blowout.

Black Propaganda and Destabilizations

Schlanger: As the financial crisis approaches, the same people who created the financial crisis—the City of London and other—have escalated destabilizations. The situation in Hong Kong, China, as we covered it last week, has continued to worsen, with other aspects of encirclement of China. Where does that stand now?

Zepp-LaRouche: I think there is an enormous amount of black propaganda, transmitted by the media in Europe and in the United States, all of whom claim that the demonstrations in Hong Kong are “all so peaceful,” and demonstrators are “all so freedom loving,” and so forth.

I’m not saying there are not some serious local issues; if you have a liberal society, which Hong Kong was, under British governorship for 154 years, from 1843-1997, it is quite natural that you would have such a reaction. But these demonstrations have been far from peaceful: There have been acts of violence, which have been documented in videos; police stations have been attacked, the airport occupied, the local parliament violently attacked. Not that peaceful at all. There is British manipulation, which the Chinese media have exposed quite a bit, going back to the British role in creating and executing the Opium Wars, when British troops occupied the island of Hong Kong in 1841, to use as a military staging point.

Now, in that light, this is really absolutely scandalous, that two anti-government students were given the floor of the British Parliament, to demand the reinstitution of the Treaty of Nanjing and the Treaty of Tientsin. These were the infamous British-imposed treaties after the Opium War, which made Hong Kong a British Crown Colony and allowed the sale of opium in China. So if you have students demanding the reinstitution of these treaties, if that’s not giving the show away, I don’t know what is.

An article recently in the American paper The Hill, pointed to the fact that everybody in the United States supports these “freedom-loving people” of Hong Kong—Congress, Lindsey Graham, Nancy Pelosi, John Bolton—but that one voice is missing in the chorus: that of Donald Trump.

So I think this is important, because you have otherwise an enormous effort to escalate against the rise of China with many operations, Taiwan being another, and unfortunately, Trump seems not to be in control of all of what is happening in the name of the U.S. administration around the world. There was just the sale of $2.2 billion worth of military equipment to Taiwan. The Taiwan government has offered asylum to protesters from Hong Kong, and the Chinese Foreign Ministry basically said Hong Kong and Taiwan touch the “core interests” of China, and therefore there will be absolutely no capitulation on the side of mainland China on these two points.

Then, there is the orchestration of fraudulent allegations of human rights violations of Uighurs in Xinjiang, and the Huawei “surveillance” case. Secretary of State Mike Pompeo is continuing his bellicose anti-China statements, despite the President’s desire to get the deal with China, for sure, before next year’s election. I forgot to mention the continuing tensions in the South China Sea. The overall atmosphere is really very, very negative.

China, which is on a pathway of changing world policy in the direction of a new paradigm of international relations, is being bombarded right now with a very significant assault. This is very dangerous, because there is no solution to the present world crisis without China. And that’s a fact. So, we have to see, but I think the record of who is responsible for the geopolitical manipulation has to be published. Doing so will hopefully help to stop it.

French and Russian Presidents Meet

Schlanger: Sticking with this strategic picture, the Russians and the Chinese have issued a couple of statements, including warnings against attempts to work regime changes against them. Then, there was a very significant meeting between President Putin and President Macron, which just took place, leading up to the G7 meeting. How do you assess that meeting, Helga?

Zepp-LaRouche: I think the Macron-Putin meeting was quite good. It was in preparing the August 24-26 G7 meeting in Biarritz, France, which Putin is not attending, because Russia was previously kicked out of the G8. But I think it very positive that Putin and Macron met in France at the summer residence of Macron, and Macron basically said that France wants to play a role to reopen ties between the European Union and Russia, because there would be no solution to the world’s problems without Russia.

Putin on his part, said some very interesting things also: They obviously discussed Syria, Ukraine, Libya, and so forth. But then somebody mentioned the idea of a Europe from Lisbon to Vladivostok. And then Putin responded, “Well, this is not an idea which comes from us. This is actually an idea which comes from Charles de Gaulle, who talked about “Europe from the Atlantic to the Urals.” But Russia is much larger, it goes to the Pacific; it’s a European civilization and culture, and this idea of a “Europe from Lisbon to Vladivostok” may sound impossible today, but sometimes the impossible becomes the inevitable very quickly.

And I think that is very interesting, because I think—I don’t know, I didn’t talk to Putin—but I think this is a prophetic foresight, that once you go into an absolute upheaval and a collapse of the present order, then naturally, one resorts to the only concepts available. So I think this idea is quite interesting. I don’t want to comment on it any further, but it’s for sure, food for thought.

Schlanger: Macron, and then joined by Trump, emphasized that Russia should be brought back into the group of what the IMF describes as the largest advanced economies, to make it the G8 again.

The other situation in Europe that’s really quite explosive is Italy, where the government was brought down yesterday. What do you think is going to happen there?

Italian Goings-On

Zepp-LaRouche: First of all, there is a wide discussion that this is the result of “Ursula,” referring to EU Commission President Ursula von der Leyen, because she recently met with Prime Minister Giuseppe Conte, and people really think that the idea was to cause a fait accompli so that Deputy Prime Minister Matteo Salvini was basically forced into this crisis. That remains to be seen.

Yesterday, Conte spoke to the Senate, accusing Salvini of not obeying the rules of the EU. Salvini responded with something even more interesting. He talked about his vision for Italy for 2050, in the same way that Lyndon LaRouche spoke and wrote about the next 30, 40, 50 years, the same idea the Chinese have in thinking in terms of 2050. It’s good if politicians start to have a little longer vision than the next election for their own post. Salvini, among other things, talked about infrastructure, and the American Constitution, that the people have a right to “the pursuit of happiness.” So this is quite good.

Where all this will go is completely open. Conte offered his resignation to State President Sergio Mattarella, who will now see if another combination can be formed for a government, and if that doesn’t function, there will be new elections.

On some other combination, the only way the Five Star Movement party (M5S) could form a government with the Democratic Party (PD) would be with the help of Silvio Berlusconi’s Forza Italia party (FI) which is completely split. So it’s impossible at this point to say how this will turn out—will it be a short-lived new government, with many factors in it? Or will it be new elections? We will see.

But the Italian government crisis is just one more sign that Europe is in a complete turmoil. Another is the withdrawal of the United Kingdom from the European Union (Brexit) in October, and another is the outcome of the German local elections September 8, which for sure will change the landscape, because of the expected rise of the Alternative for Germany (AfD) party. So Europe is in a turmoil and it definitely needs a completely different unifying principle, such as that of cooperating with the New Silk Road.

‘Ecofascism’ and Media Attacks Against the LaRouche Movement

Schlanger: Shift to the United States, I think it’s impossible to talk about the U.S. situation without talking about the work of the LaRouche movement, and this became clear in two ways: One was a Washington Times attack on Lyndon LaRouche and his organization which came out Aug. 19. And the other was insinuated in a page-one exposure of “ecofascism” in the August 18 Washington Post. What do you make of this, Helga?

Zepp-LaRouche: Well, first of all, there have been quite a number of attacks on our international movement, which in one sense means we’re succeeding at doing something good, because if we wouldn’t be doing important things, they wouldn’t find it necessary to attack us: The Times of London slanderous obituary of Lyndon on March 29; a one-hour slander August 18 on Swedish radio; and now, as you just mentioned, the piece in the Washington Times, complaining that despite my husband’s death, we are still moving. I think that is a very good sign.

Now that is quite an admission. And then, some of these articles go at quite some length into the eugenics movement of the ’20s and ’30s, which we have documented in large part—that out of the eugenics movement, which was the basis of the race policy of the National Socialists in Germany, discredited with the collapse of the Nazi government, but continued by Julian Huxley in his position as UNESCO’s first director from 1946-48, who proclaimed it quite openly: He said, now this eugenics is discredited for many years, so we have to basically rename it, conservation movement, protection of nature.

Also mentioned is the role of something called “Federation for American Immigration Reform” (FAIR), whose founder is John Tanton—whom we attacked 30-40 years ago, as part of the so-called [William] Paddock Plan of the ’70s, the idea to halve the population of Mexico. So this evil is really coming out very, very openly, making the connection, even saying “ecofascism”—that already is a major important characterization, because that is what it is; then these historical ties are also covered. Everyone should really look at our documentation, because we have published a lot of this over the years.

The Sad Case of Greta Thunberg

Schlanger: I encourage everyone to go to our website. There you’ll find a large number of in-depth articles discussing the fascist eugenics and fascist ecology origins of today’s Green New Deal, the FridaysForFuture, Extinction Rebellion, and related outfits.

You have this publicity stunt now with 16-year-old Swedish “climate activist” Greta Thunberg coming over to the United States in a millionaire’s yacht. But this is being exposed: In fact, Helga, you brought up the craziness of Gail Bradbrook, the woman who founded the Extinction Rebellion. It’s hard to believe that she’s openly calling for use of psychotropic mushrooms to discover how to save the planet. This is probably some of the reason people are publishing this, because it’s so hard to believe.

But it does bring up the bigger question, which is science versus fascist ideology. We see this dichotomy on many fronts, but I think it’s important for you to lay out why this is the real fight.

Zepp-LaRouche: Well, before I say something on that, I should mention that there was an amazing article in the Sunday Times of London on August 18, illustrating another aspect of Greta Thunberg, basically saying that this is designed to cause the biggest bonanza for the financiers. That coming from The Times, I find quite interesting. The article first recounts one narrative, that of Greta, the teenager, sitting for a year in front of the Swedish parliament, until somehow innocently inspiring “climate strike” demonstrations throughout Europe.

But then, the authors reveal a quite different story, namely, that a guy named Ingmar Rentzhog, who has become Thunberg’s manager, so to speak, was trained by Al Gore, and is connected to the top think-tank in Sweden, the Global Challenges Foundation, which in turn, has as its Executive Director Jens Orback, a former Swedish government minister who is absolutely identical with the Swedish oil and energy industry, and that their intention is to make the biggest bonanza ever by getting everybody to invest in green financing.

Now, that is really, absolutely the case, and I think the real narrative of Greta Thunberg—she may not even know all of this, maybe she does, maybe she doesn’t—but this really shows that this poor girl is completely being played. And that the idea to go now for green financing, is the last effort to prevent, or at least postpone the collapse of the financial system by causing a last-phase boom. Were this plan allowed to be carried out, it would completely destroy the physical economy, and therefore it’s very good that these stories are now coming out, because maybe there is a return to reason in time, before disaster is complete.

Schlanger: And as you pointed out in a discussion with our colleagues yesterday, this makes the issue very clear: real science versus fascist ideology.

Zepp-LaRouche: Yes. The Sunday Times article also reports on a Climate Emergency Plan recently published by the Club of Rome, and that Thunberg’s so-called “talking points” are identical to the Call to Action points of the Club of Rome! This is really incredible, because the Club of Rome is not an organization of scientists; they are quacks, they are fraudsters, who in 1972 programmed a computer to “confirm” as an end result, what they wanted to say, namely that human civilization’s limits to growth had been reached, that the Earth is finite. The whole ecology movement grew out of this wrong conception.

Scientists Say CO₂ Not Responsible for Changes in Climate

So, I think the future is not decided at all. On the other side, now, a growing number of scientists, in 20 countries already, have picked up on the initiative of 90 Italian scientists, who on July 4, 2019 signed a petition stating that the thesis of an anthropogenic origin of global warming is an unproven hypothesis, that there is no connection between CO₂ emission and climate change, and therefore, they are calling on the Italian government not to take the costly and completely ineffective measures being urged by the climate extremists.

If you want to change the climate, well, first of all, man can probably not do that at all, because the causes of changes in the Earth’s climate are not the result of human activities, but have their origin in long cycles of the Solar System in the Milky Way, the galaxy, Solar processes, and cosmic radiation.

So, it is very important that there is now a growing movement of scientists challenging the claim of manmade climate change. They are appealing to the governments, especially in Europe—and perhaps also President Trump—to re-establish a scientific debate on this issue. President has proposed a Presidential Committee on Climate Security to do just that.

I think people should spread this idea, and contact scientists and get them to get in touch with their colleagues on this. The resolution being circulated internationally for additional signatures, is supposed to be published in a few weeks.

Help support our campaign, if you agree that humanity should really not descend into a New Dark Age, which would extinguish civilization altogether, but not the way the Extinction Rebellion people are talking about it, but due to a lack of physical production: food, water, and all of the other things for a growing, advancing civilization.

Schlanger: It would seem that the Extinction Rebellion is actually for extinction: They just want it through a New Dark Age, through phony attacks on science.

Return to Real Science and Classical Art

Zepp-LaRouche: I think we are in an incredible process, where many, many people realize that this system is not working. It’s not working in Europe; it’s not working in the United States. Our colleagues in the United States report a very interesting pattern, that many people there don’t want to hear about political parties anymore. I find that healthy, because party politics is really evil, because it has completely degenerated into lobbyism for particular interests. Going after the common interest, the common aims of mankind, the common good of nations is a much better approach.

And we will fight to have a return to the scientific ideas of the physical universe, of natural science, of great Classical art, basically the ideas of Lyndon LaRouche which I can only encourage people to study. If you go to our archives, you will find an enormous quantity of articles by Lyndon LaRouche. Contained in those articles are the most profound conceptions which have developed by anybody to the present time.

And therefore, I again ask you to join the fight for the exoneration of my husband, and join our effort to, in time, get the European nations and the United States to cooperate with Russia and China, in a New Paradigm. Because if we do not change the present lunacy of geopolitical confrontation, the world can actually end up in catastrophe. The crisis points are many, seemingly minor incidents under these conditions can easily trigger larger conflicts. So we have to have a new cooperation between the United States, Russia, China, and India; and we should not give up on the European nations, for they, too, can be brought back to reason. So join our effort.

Schlanger: Helga, on behalf of our viewers and readers, thank you for once again making the world’s current situation coherent and understandable. And now it’s up to people to act. See you again next week!