PRESS RELEASE
LaRouche Addresses Diplomats
On Solution to Economic Crisis:
Global Glass-Steagall
May 5, 2010 (EIRNS)—As the bankrupt global monetary system was crashing, especially in Europe, Lyndon LaRouche yesterday addressed a private gathering of diplomats in Washington, D.C. The following excerpt represents the core of his message:
[T]here's only one solution that's going to save the world from a general breakdown crisis of the entire world system. The crisis is centered in the Trans-atlantic community right now. That is, the United States itself, under the current President, is a disaster area. And until this President is replaced, the United States is going to continue to be a disaster area. Only the elimination of this President by his expulsion from office, in one way or the other, will prevent that from happening. And when the United States goes, then the whole world system will go.
The problem is, we have, in the other parts of the planet—for example, in part of the Russian program, the Russian monetary-financial system is a disaster area, because it's tied into the Inter-Alpha Group. But the Russian physical economy, the Russian perspectives are very good, because Russia is part of the Asian process, which is concentrating on nuclear power, railway transportation systems, and other things, which are essential. By itself, it would seem that this part of Asia, or Eurasia, is in a very strong position. The problem is, if the trans-Atlantic system goes under, then the entire world system goes under. So the problem is not centered in Asia, but Asia can not withstand, the effects of a collapse of the trans-Atlantic economy.
There's only one remedy, there's only one way this can be stopped—and the thing is right in the United States, it's being pressed now. We don't know whether we have a sufficient majority for it or not, but it is being pushed: And that is, the re-installation of a Glass-Steagall standard for the U.S. dollar. If that Glass-Steagall is established—and there's much and growing pressure for this—in that case, then, the United States can become the pivot of a recovery of the world economy.
What this means is this: Most of the international debt of the world today is fraudulent. It's based on financial structures which are absolutely fraudulent. And therefore, if you were to put the world through a Glass-Steagall standard, the standard which was established by Franklin Roosevelt in 1933 and continued until 1987-89, if that standard is imposed by the United States, then, what happens is, most of the debt, most of the nominal financial debt of the world is cancelled. Because most of the debt of nations is fraudulent. It is purely financial speculation, it has no intrinsic value. So therefore, what would happen would be, quadrillions of dollars of worthless debt, on the world, would disappear: Under those conditions, and with the establishment of a fixed-exchange-rate system, on that basis we could handle the entire process.
That doesn't end the problem. It ends the immediate problem. The immediate problem is, growth of the world economy. That's going to be a longer-term process: It'll probably take two generations to build up the world economy again, from the mess it's become now. But it's perfectly feasible. This means a very large increase of nuclear power development. It will mean the reactivation of a large-scale space program, which will be the major technology-driver for the planet as a whole. These are the conditions that we require....
